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Demand for School Quality and Local District Administration

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  • Collins, Courtney A.
  • Kaplan, Erin K.

Abstract

In 2013 Memphis City Schools and Shelby County Schools consolidated into a unified system, creating one of the largest districts in the nation. Six Memphis suburbs subsequently voted to create separate municipal districts. Many complex school zoning changes resulted from the merger and subsequent splintering of districts. This provides a rare opportunity to identify how the value of academic quality and local district control are capitalized in housing prices, independent of school-level demographic characteristics. Using a difference-in-differences approach including a repeat sales specification, we find that a one standard deviation increase in test scores increases housing prices by 2-3%, while district administration accounts for 6-8% of home values. We also consider the effect of student demographics and find that school-level diversity has a negative impact on home values, independent of academic performance and district administration.

Suggested Citation

  • Collins, Courtney A. & Kaplan, Erin K., 2022. "Demand for School Quality and Local District Administration," Economics of Education Review, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:ecoedu:v:88:y:2022:i:c:s0272775722000292
    DOI: 10.1016/j.econedurev.2022.102252
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    References listed on IDEAS

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    1. Xiaozhou Ding & Christopher Bollinger & Michael Clark & William Hoyt & William H. Hoyt, 2023. "Estimation of Welfare Effects in Hedonic Difference-in-Differences: The Case in School Redistricting," CESifo Working Paper Series 10670, CESifo.

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    More about this item

    Keywords

    Education policy; housing prices; test scores; district; diversity;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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