Among the 50 states, 44 use free and reduced-price lunch enrollment to identify low-income students. These data are also commonly used to allocate federal, state, and local funding to schools serving low-income children. School and district poverty rates, as determined by free and reduced-price lunch enrollment, additionally feature prominently in…

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…