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The impact of the low income housing tax credit program on local schools

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  • Di, Wenhua
  • Murdoch, James C.
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    Abstract

    The low-income housing tax credit (LIHTC) program has developed over two million rental homes for low-income households since 1986. The perception of deterioration in school quality has been a main reason for community opposition to LIHTC projects in middle- and upper-income areas. In this paper, we examine the impact of LIHTC projects on the nearby school performance using data on all LIHTC projects and elementary schools in Texas from the 2003–04 through 2008–09 academic years. We employ the longitudinal structure of the data to control for school fixed effects and estimate the relationship between the opening of nearby LIHTC on campus-level standardized test scores and performance ratings. We address the potential selection biases by controlling for preexisting trends in school performance prior to the study period. We find no robust evidence that the opening of LIHTC units negatively impacts the performance of nearby elementary schools.

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    Bibliographic Info

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

    Volume (Year): 22 (2013)
    Issue (Month): 4 ()
    Pages: 308-320

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    Handle: RePEc:eee:jhouse:v:22:y:2013:i:4:p:308-320

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

    Related research

    Keywords: Housing; Education; Low-income housing tax credit; Neighborhood;

    References

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    1. Mary Burke & Tim R. Sass, 2011. "Classroom peer effects and student achievement," Public Policy Discussion Paper 11-5, Federal Reserve Bank of Boston.
    2. Evans, William N & Oates, Wallace E & Schwab, Robert M, 1992. "Measuring Peer Group Effects: A Study of Teenage Behavior," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 966-91, October.
    3. Keren M. Horn & Katherine M. O'Regan, 2011. "The low income housing tax credit and racial segregation," Housing Policy Debate, Taylor & Francis Journals, vol. 21(3), pages 443-473, June.
    4. Amine Ouazad, 2008. "Assessed by a teacher like me: race, gender and subjective evaluations," LSE Research Online Documents on Economics 28276, London School of Economics and Political Science, LSE Library.
    5. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G., 2004. "Disruption versus Tiebout improvement: the costs and benefits of switching schools," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1721-1746, August.
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    7. Edward P. Lazear, 1999. "Educational Production," NBER Working Papers 7349, National Bureau of Economic Research, Inc.
    8. Eric A. Hanushek & Margaret E. Raymond, 2005. "Does school accountability lead to improved student performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 297-327.
    9. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 953-966, December.
    10. Eric A. Hanushek & John F. Kain & Jacob M. Markman & Steven G. Rivkin, 2001. "Does Peer Ability Affect Student Achievement?," NBER Working Papers 8502, National Bureau of Economic Research, Inc.
    11. Anna M Santiago & George C Galster & Peter Tatian, 2001. "Assessing the property value impacts of the dispersed subsidy housing program in Denver," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 65-88.
    12. Thomas J. Kane & Douglas O. Staiger, 2002. "The Promise and Pitfalls of Using Imprecise School Accountability Measures," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 91-114, Fall.
    13. Jacob Vigdor & Jens Ludwig, 2007. "Segregation and the Black-White Test Score Gap," NBER Working Papers 12988, National Bureau of Economic Research, Inc.
    14. Baum-Snow, Nathaniel & Marion, Justin, 2009. "The effects of low income housing tax credit developments on neighborhoods," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 654-666, June.
    15. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, 06.
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