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School district quality and property values: Examining differences along school district boundaries

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  • Dhar, Paramita
  • Ross, Stephen L

Abstract

Examining differences across school district boundaries rather than school attendance zone boundaries has several advantages. These advantages include being applicable when attendance zones are not available or less relevant to educational outcomes as arises with within district school choice and for examining the effect of factors like school spending or property taxes that do not vary within districts. However, school district boundaries have often been in place for many years allowing households to sort based on school quality and potentially creating distinct neighborhoods on either side of boundaries. We estimate models of housing prices using repeated cross-sections of housing transactions near school district boundaries in Connecticut. These models exploit changes over time to control for across boundary differences in neighborhood quality. We find significant effects of test scores on property values, but those effects are notably smaller than both OLS and traditional boundary fixed effects estimates.

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Bibliographic Info

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

Volume (Year): 71 (2012)
Issue (Month): 1 ()
Pages: 18-25

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Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:18-25

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Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: School district performance; Housing price; District boundaries; Test scores; Omitted neighborhood attributes;

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References

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  1. Gabrielle Fack & Julien Grenet, 2010. "When do Better Schools Raise Housing Prices? Evidence from Paris Public and Private Schools," CEE Discussion Papers, Centre for the Economics of Education, LSE 0119, Centre for the Economics of Education, LSE.
  2. David Brasington & D. Haurin, . "Educational Outcomes and House Values: A Test of the Value-Added Approach," Departmental Working Papers, Department of Economics, Louisiana State University 2003-05, Department of Economics, Louisiana State University.
  3. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 92(4), pages 945-964, November.
  4. Carroll, Robert & Yinger, John, 1994. "Is the Property Tax a Benefit Tax? The Case of Rental Housing," National Tax Journal, National Tax Association, National Tax Association, vol. 47(2), pages 295-316, June.
  5. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 115(4), pages 588-638, 08.
  6. Reback, Randall, 2005. "House prices and the provision of local public services: capitalization under school choice programs," Journal of Urban Economics, Elsevier, Elsevier, vol. 57(2), pages 275-301, March.
  7. John M. Clapp & Anupam Nanda & Stephen L. Ross, 2005. "Which School Attributes Matter? The Influence of School District Performance and Demographic Composition on Property Values," Working papers, University of Connecticut, Department of Economics 2005-26, University of Connecticut, Department of Economics, revised Jan 2007.
  8. Haurin, Donald R. & Brasington, David, 1996. "School Quality and Real House Prices: Inter- and Intrametropolitan Effects," Journal of Housing Economics, Elsevier, Elsevier, vol. 5(4), pages 351-368, December.
  9. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation Of Elementary Education," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(2), pages 577-599, May.
  10. P. C. Cheshire & Stephen Charles Sheppard, 2004. "Capitalising the value of free schools : the impact of supply characteristics and uncertainty," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 567, London School of Economics and Political Science, LSE Library.
  11. Rohlin, Shawn M., 2011. "State minimum wages and business location: Evidence from a refined border approach," Journal of Urban Economics, Elsevier, Elsevier, vol. 69(1), pages 103-117, January.
  12. Bogart, William T. & Cromwell, Brian A., 2000. "How Much Is a Neighborhood School Worth?," Journal of Urban Economics, Elsevier, Elsevier, vol. 47(2), pages 280-305, March.
  13. Ross, Stephen & Yinger, John, 1999. "Sorting and voting: A review of the literature on urban public finance," Handbook of Regional and Urban Economics, Elsevier, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 47, pages 2001-2060 Elsevier.
  14. Downes, Thomas A. & Zabel, Jeffrey E., 2002. "The impact of school characteristics on house prices: Chicago 1987-1991," Journal of Urban Economics, Elsevier, Elsevier, vol. 52(1), pages 1-25, July.
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Citations

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Cited by:
  1. Stephen Gibbons & Stephen Machin & Olmo Silva, 2012. "Valuing School Quality Using Boundary Discontinuities," CEE Discussion Papers, Centre for the Economics of Education, LSE 0132, Centre for the Economics of Education, LSE.
  2. repec:mab:wpaper:23 is not listed on IDEAS
  3. Graves, Jennifer, 2013. "School calendars, child care availability and maternal employment," Journal of Urban Economics, Elsevier, Elsevier, vol. 78(C), pages 57-70.
  4. De Fraja, Gianni & Martínez-Mora, Francisco, 2014. "The desegregating effect of school tracking," Journal of Urban Economics, Elsevier, Elsevier, vol. 80(C), pages 164-177.
  5. Amy Ellen Schwartz & Ioan Voicu & Keren Mertens Horn, 2014. "Do Choice Schools Break the Link Between Public Schools and Property Values? Evidence from House Prices in New York City," Working Papers, University of Massachusetts Boston, Economics Department 2014_03, University of Massachusetts Boston, Economics Department.

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