%0 Journal Article %T Accounting for Student Disadvantage in Value %A Cory Koedel %A Eric Parsons %A Li Tan %J Journal of Educational and Behavioral Statistics %@ 1935-1054 %D 2019 %R 10.3102/1076998618803889 %X We study the relative performance of two policy-relevant value-added models¡ªa one-step fixed effect model and a two-step aggregated residuals model¡ªusing 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 disadvantage. This is a realistic condition that has implications for model performance because researchers typically have access to only a noisy, binary measure of disadvantage. We find that one- and two-step value-added models perform similarly across a wide range of student and teacher sorting conditions, with the two-step model modestly outperforming the one-step model in conditions that best match observed sorting in real data. A reason for the generally superior performance of the two-step model is that it better handles the use of an error-prone, dichotomous proxy for student disadvantage %K accountability %K econometric analysis %K educational policy %K evaluation %K policy analysis %K teacher research %U https://journals.sagepub.com/doi/full/10.3102/1076998618803889