This paper proposes a teacher effect change model in the form of a latent variable regression 5-level hierarchical model (LVR-HM5). Using multiple years of student achievement data, the LVR-HM5 attempts to simultaneously estimate teacher effect as well as teacher initial status and the gap parameter to model the change of such latent parameters over time. The gap parameter, the latent variable regression coefficient (Choi and Seltzer 2010; Choi and Kim 2019), captures the relationship between initial status and rates of changes within each year's classroom. Furthermore, the LVR-HM5 allows us to model the teacher effect over time as a function of both time-varying and time-invariant characteristics. Such studies that focus on finding key correlates of teacher effect may have policy implications on teacher education, teacher professional development, and teachers' instructional strategies that are potentially associated with improving teacher effectiveness.