How Much do Public Schools Really Cost? Estimating the Relationship between House Prices and School Quality
AbstractThis paper investigates the relationship between housing prices and the quality of public schools in the Australian Capital Territory. To disentangle the effects of schools and other neighbourhood characteristics on the value of residential properties, we compare sale prices of homes on either side of high school attendance boundaries. We find that a 5 percentage point increase in test scores (approximately 1�SD) is associated with a 3.5 per cent increase in house prices. Our result is in line with private school tuition costs, and accords with prior research from the UK and the USA. Estimating the effect of school quality on house prices provides a possible measure of the extent to which parents value better educational outcomes. Copyright © 2008 The Economic Society of Australia.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The Economic Society of Australia in its journal Economic Record.
Volume (Year): 84 (2008)
Issue (Month): 265 (06)
Contact details of provider:
Postal: Central Council Administration, L.P.O. Box 2161, Hawthorn VIC 3122
Phone: 61 3 9497 4140
Fax: 61 3 9497 4140
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0249
More information through EDIRC
Other versions of this item:
- Ian Davidoff & Andrew Leigh, 2007. "How Much Do Public Schools Really Cost? Estimating the Relationship Between House Prices and School Quality," CEPR Discussion Papers 558, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013.
"Valuing school quality using boundary discontinuities,"
Journal of Urban Economics,
Elsevier, vol. 75(C), pages 15-28.
- Steve Gibbons & Stephen Machin & Olmo Silva, 2009. "Valuing School Quality Using Boundary Discontinuities," SERC Discussion Papers 0018, Spatial Economics Research Centre, LSE.
- Stephen Gibbons & Stephen Machin & Olmo Silva, 2012. "Valuing School Quality Using Boundary Discontinuities," CEE Discussion Papers 0132, Centre for the Economics of Education, LSE.
- John Glen & Joseph G. Nellis, 2010. "“The Price You Pay”: The Impact of State-Funded Secondary School Performance on Residential Property Values in England," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(4), pages 405-428, December.
- Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
- Christian A. L. Hilber, 2011. "The Economics Implications of House Price Capitalization A Survey of an Emerging Literature," SERC Discussion Papers 0091, Spatial Economics Research Centre, LSE.
- Machin, Stephen, 2011.
"Houses and schools: valuation of school quality through the housing market: EALE 2010 presidential address,"
Open Access publications from London School of Economics and Political Science
CEPOP29, London School of Economics and Political Science.
- Stephen Machin, 2011. "Houses and Schools: Valuation of School Quality through then Housing Market - EALE 2010 Presidential Address," CEP Occasional Papers 29, Centre for Economic Performance, LSE.
- Scott A. Imberman & Michael F. Lovenheim, 2013.
"Does the Market Value Value-Added? Evidence from Housing Prices After a Public Release of School and Teacher Value-Added,"
NBER Working Papers
19157, National Bureau of Economic Research, Inc.
- Scott Andrew Imberman & Michael Lovenheim, 2013. "Does the Market Value Value-Added? Evidence from Housing Prices after a Public Release of School and Teacher Value-Added," CESifo Working Paper Series 4105, CESifo Group Munich.
- Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press, vol. 24(1), pages 99-119, spring.
- Vandegrift, Donald & Lockshiss, Amanda & Lahr, Michael/L, 2009.
"Town versus Gown: The Effect of a College on Housing Prices and the Tax Base,"
18998, University Library of Munich, Germany, revised 30 Nov 2009.
- Donald Vandegrift & Amanda Lockshiss & Michael Lahr, 2012. "Town versus Gown: The Effect of a College on Housing Prices and the Tax Base," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 43(2), pages 304-334, 06.
- Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.