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Neighbourhood, school zoning and the housing market: Evidence from New South Wales

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  • Doko Tchatoka, Firmin
  • Varvaris, Vanessa

Abstract

This paper investigates the impact of primary school zoning on housing prices in Australia. Using the combination of boundary and regression discontinuity design techniques, along with an index of school academic quality and comprehensive data on both schools and housing transactions in New South Wales we find that the price of houses located in high-performing side of primary school zone boundaries is, on average, about 2.5% to 3.6% higher than that of similar houses located in low-performing side of these boundaries. This finding provides not only an insight into the price elasticity of demand for high quality education, but also has important policy implications as it highlights the need to address the potential educational inequalities associated with school zoning in Australia.

Suggested Citation

  • Doko Tchatoka, Firmin & Varvaris, Vanessa, 2021. "Neighbourhood, school zoning and the housing market: Evidence from New South Wales," Journal of Housing Economics, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:jhouse:v:54:y:2021:i:c:s1051137721000401
    DOI: 10.1016/j.jhe.2021.101790
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    More about this item

    Keywords

    School zoning; House prices; Boundary discontinuity design; Regression discontinuity design; Price premium;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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