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Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs

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  • Brunner, Eric J.
  • Cho, Sung-Woo
  • Reback, Randall

Abstract

In theoretical models of residential sorting, a household's location decision is closely linked to its demand for local public services, such as schooling. Since school choice programs weaken the link between residential location and schooling options, they have the potential to affect both property values and residential location choices. Results derived from computable general equilibrium models suggest these effects could be large, but there is limited empirical evidence concerning whether they actually occur. This paper develops and tests predictions concerning the impact of inter-district choice programs on housing values and residential location decisions. Our empirical results strongly confirm our theoretical predictions and the findings of the computable general equilibrium literature: after their states adopt inter-district choice programs, districts with desirable nearby, out-of-district schooling options experience relatively large increases in housing values, residential income, and population density.

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Bibliographic Info

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

Volume (Year): 96 (2012)
Issue (Month): 7 ()
Pages: 604-614

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Handle: RePEc:eee:pubeco:v:96:y:2012:i:7:p:604-614

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Web page: http://www.elsevier.com/locate/inca/505578

Related research

Keywords: Open enrollment; General equilibrium; School choice; Capitalization;

References

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Cited by:
  1. repec:mab:wpaper:23 is not listed on IDEAS
  2. 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 2014_03, University of Massachusetts Boston, Economics Department.

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