We study the relative performance of two policy-relevant value-added models--a one-step fixed effect model and a two-step aggregated residuals model--using a simulated data set well grounded in the value-added literature. A key feature of our data generating process is that student achievement depends on a continuous measure of economic…

Considers the problem of modeling sustained educational change through the use of dynamic multipliers applied to panel data and attempts to develop and advocate dynamic multiplier analysis for educational research. Presents three examples to illustrate the approach and closes with a discussion of the implications of dynamic multiplier analysis for…