Applied Psychological Measurement, Ahead of Print.
When using Bayesian hierarchical modeling, a popular approach for Item Response Theory (IRT) models, researchers typically face a tradeoff between the precision and accuracy of the item parameter estimates. Given the pooling principle and variance-dependent shrinkage, the expected behavior of Bayesian hierarchical IRT models is to deliver more precise but biased item parameter estimates, compared to those obtained in nonhierarchical models. Previous research, however, points out the possibility that, in the context of the two-parameter logistic IRT model, the aforementioned tradeoff has not to be made. With a comprehensive simulation study, we provide an in-depth investigation into this possibility. The results show a superior performance, in terms of bias, RMSE and precision, of the hierarchical specifications compared to the nonhierarchical counterpart. Under certain conditions, the bias in the item parameter estimates is independent of the bias in the variance components. Moreover, we provide a bias correction procedure for item discrimination parameter estimates. In sum, we show that IRT models create a unique situation where the Bayesian hierarchical approach indeed yields parameter estimates that are not only more precise, but also more accurate, compared to nonhierarchical approaches. We discuss this beneficial behavior from both theoretical and applied point of views.