G. Woodhouse et al., ADJUSTING FOR MEASUREMENT ERROR IN MULTILEVEL ANALYSIS, Journal of the Royal Statistical Society. Series A. Statistics in society, 159, 1996, pp. 201-212
The effects of adjustment for measurement error are illustrated in a t
wo-level analysis of an educational data set. It is shown how estimate
s and conclusions can vary, depending on the degree of measurement err
or that is assumed to exist in explanatory variables at level 1 and le
vel 2, and in the response variable. The importance of obtaining satis
factory prior estimates of measurement error variances and covariances
, and of correctly adjusting for them during analysis, is demonstrated
.