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The capitalization of school quality into house values: A review

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  • Nguyen-Hoang, Phuong
  • Yinger, John
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    Abstract

    This paper provides a comprehensive review of empirical studies on the capitalization of school quality into house values that have appeared since 1999. We explore their methodological innovations and capitalization results. Most studies find significant capitalization especially for educational outputs, although the magnitudes are smaller for studies with fixed-effects estimation strategies. These studies find that house values rise by below 4% for a one-standard deviation increase in student test scores. Although major conceptual and estimation challenges remain, much progress has been made on this topic.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Housing Economics.

    Volume (Year): 20 (2011)
    Issue (Month): 1 (March)
    Pages: 30-48

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    Handle: RePEc:eee:jhouse:v:20:y:2011:i:1:p:30-48

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    Web page: http://www.elsevier.com/locate/inca/622881

    Related research

    Keywords: School quality capitalization Hedonic models House prices Sorting;

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    Cited by:
    1. Stephen Coate, 2013. "Evaluating Durable Public Good Provision using Housing Prices," NBER Working Papers 18767, National Bureau of Economic Research, Inc.
    2. Steve Gibbons & Stephen Machin & Olmo Silva, 2009. "Valuing School Quality Using Boundary Discontinuities," SERC Discussion Papers 0018, Spatial Economics Research Centre, LSE.
    3. repec:mab:wpaper:23 is not listed on IDEAS
    4. Gjestland, Arnstein & McArthur, David Philip & Osland, Liv & Thorsen, Inge, 2014. "The suitability of hedonic models for cost-benefit analysis: Evidence from commuting flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 136-151.

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