Tests of Random Assignment to Peers in the Face of Mechanical Negative Correlation: An Evaluation of Four Techniques

10 Pages Posted: 3 Dec 2024

See all articles by Megan T. Stevenson

Megan T. Stevenson

University of Virginia School of Law

Date Written: February 08, 2016

Abstract

I present a novel method of testing for random assignment to peer groups-a 'split sample test'-and evaluate it using simulations alongside three other commonly used tests: a permutation test, a test of joint significance of peer group dummies, and a test which controls for the mean type in the urn of potential peers. All four tests are designed to address finitesample mechanical negative correlation between peers. While the first three tests have correct size and similar power against an alternative hypothesis of positive correlation, the split sample test is the only one which provides an estimate of the magnitude of correlation between peers. The test which controls for the mean type in the urn of potential peers has low power in all simulations and incorrect size in some.

Suggested Citation

Stevenson, Megan, Tests of Random Assignment to Peers in the Face of Mechanical Negative Correlation: An Evaluation of Four Techniques (February 08, 2016). Available at SSRN: https://ssrn.com/abstract=4980396 or http://dx.doi.org/10.2139/ssrn.4980396

Megan Stevenson (Contact Author)

University of Virginia School of Law ( email )

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