arXiv 24 Mar 2025 · Econometrics
arXiv:2503.19178 · PDF · DOI · OpenAlex · Extracted main text
It is common to use shrinkage methods such as empirical Bayes to improve estimates of teacher value-added. However, when the goal is to perform inference on coefficients in the regression of long-term outcomes on value-added, it's unclear whether shrinking the value-added estimators can help or hurt. In this paper, we consider a general class of value-added estimators and the properties of their corresponding regression coefficients. Our main finding is that regressing long-term outcomes on shrinkage estimates of value-added performs an automatic bias correction: the associated regression estimator is asymptotically unbiased, asymptotically normal, and efficient in the sense that it is asymptotically equivalent to regressing on the true (latent) value-added. Further, OLS standard errors from regressing on shrinkage estimates are consistent. As such, efficient inference is easy for practitioners to implement: simply regress outcomes on shrinkage estimates of value added.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Andrabi, T., N. Bau, J. Das, and A. I. Khwaja (2025) Heterogeneity in school value added and the private premium | 1.000 | 11 | 3 | 100% |
| 2 | Kline, P., E. K. Rose, and C. R. Walters (2022) Systemic discrimination among large us employers | 1.000 | 7 | 3 | 100% |
| 3 | Kane, T. J. and D. O. Staiger (2008) Estimating teacher impacts on student achievement: An experimental evaluation | 1.000 | 5 | 3 | 100% |
| 4 | Chetty, R., J. N. Friedman, and J. E. Rockoff (2014) Measuring the impacts of teachers ii: Teacher value-added and student outcomes in adulthood | 0.874 | 6 | 2 | 100% |
| 5 | Chetty, R., J. N. Friedman, and J. E. Rockoff (2014) Measuring the impacts of teachers i: Evaluating bias in teacher value-added estimates | 0.874 | 5 | 2 | 100% |
| 6 | Kline, P., R. Saggio, and M. Slvsten (2020) Leave-out estimation of variance components | 0.843 | 3 | 3 | 100% |
| 7 | Jacob, B. A. and L. Lefgren (2007) What do parents value in education? an empirical investigation of parents' revealed preferences for teachers | 0.811 | 4 | 2 | 100% |
| 8 | Walters, C (2024) Empirical bayes methods in labor economics | 0.737 | 3 | 2 | 100% |
| 9 | Bau, N. and J. Das (2020) Teacher value added in a low-income country | 0.644 | 2 | 2 | 100% |
| 10 | Deeb, A (2021) A framework for using value-added in regressions | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 39 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Empirical Bayes shrinkage (mostly) does not correct the measurement error in regression | 0.405 | 1 | 1 |