{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,3,27]],"date-time":"2026-03-27T17:20:38Z","timestamp":1774632038765,"version":"3.50.1"},"reference-count":87,"publisher":"The Econometric Society","issue":"4","license":[{"start":{"date-parts":[[2019,1,1]],"date-time":"2019-01-01T00:00:00Z","timestamp":1546300800000},"content-version":"unspecified","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["QE"],"abstract":"<jats:p>Researchers commonly \u201cshrink\u201d raw quality measures based on statistical criteria. This paper studies when and how this transformation's statistical properties would confer economic benefits to a utility\u2010maximizing decision\u2010maker across common asymmetric information environments. I develop the results for an application measuring teacher quality. The presence of a systematic relationship between teacher quality and class size could cause the data transformation to do either worse or better than the untransformed data. I use data from Los Angeles to confirm the presence of such a relationship and show that the simpler raw measure would outperform the one most commonly used in teacher incentive schemes.<\/jats:p>","DOI":"10.3982\/qe950","type":"journal-article","created":{"date-parts":[[2019,11,21]],"date-time":"2019-11-21T14:04:39Z","timestamp":1574345079000},"page":"1537-1577","source":"Crossref","is-referenced-by-count":4,"title":["Measuring quality for use in incentive schemes: The case of \u201cshrinkage\u201d estimators"],"prefix":"10.3982","volume":"10","author":[{"given":"Nirav","family":"Mehta","sequence":"first","affiliation":[{"name":"Department of Economics, University of Western Ontario"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"2359","published-online":{"date-parts":[[2019]]},"reference":[{"issue":"3","key":"quan200022-bib-0001","first-page":"29","volume":"3","author":"Andrabi","year":"2011","journal-title":"American Economic Journal: Applied Economics"},{"issue":"2","key":"quan200022-bib-0002","doi-asserted-by":"crossref","first-page":"871","DOI":"10.1093\/qje\/qjx001","volume":"132","author":"Angrist","year":"2017","journal-title":"Quarterly Journal of Economics"},{"issue":"6324","key":"quan200022-bib-0003","doi-asserted-by":"crossref","first-page":"483","DOI":"10.1126\/science.aal4321","volume":"355","author":"Athey","year":"2017","journal-title":"Science"},{"key":"quan200022-bib-0004","first-page":"17","author":"Babcock","year":"1993","journal-title":"Journal of Agricultural and Resource Economics"},{"key":"quan200022-bib-0005","unstructured":"Baker, E. and P. 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