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Simulation-Extrapolation with Latent Heteroskedastic Error Variance

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  • J. R. Lockwood

    (Educational Testing Service)

  • Daniel F. McCaffrey

    (Educational Testing Service)

Abstract

This article considers the application of the simulation-extrapolation (SIMEX) method for measurement error correction when the error variance is a function of the latent variable being measured. Heteroskedasticity of this form arises in educational and psychological applications with ability estimates from item response theory models. We conclude that there is no simple solution for applying SIMEX that generally will yield consistent estimators in this setting. However, we demonstrate that several approximate SIMEX methods can provide useful estimators, leading to recommendations for analysts dealing with this form of error in settings where SIMEX may be the most practical option.

Suggested Citation

  • J. R. Lockwood & Daniel F. McCaffrey, 2017. "Simulation-Extrapolation with Latent Heteroskedastic Error Variance," Psychometrika, Springer;The Psychometric Society, vol. 82(3), pages 717-736, September.
  • Handle: RePEc:spr:psycho:v:82:y:2017:i:3:d:10.1007_s11336-017-9556-y
    DOI: 10.1007/s11336-017-9556-y
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    References listed on IDEAS

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    Cited by:

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    2. Marie-Ann Sengewald & Steffi Pohl, 2019. "Compensation and Amplification of Attenuation Bias in Causal Effect Estimates," Psychometrika, Springer;The Psychometric Society, vol. 84(2), pages 589-610, June.

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