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Merit-Based Scholarship ``Over-Awards'' and Home Prices

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  • Noel D. Campbell

    (University of Central Arkansas)

  • Frank Smith

    (Henderson State University)

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    Abstract

    Some Georgia school systems award more HOPE scholarships than their academic achievement predicts, creating a geographically determined benefit that will be compounded into local real estate values. Using a two-stage regression methodology, we test to see if these scholarship ``over-awards'' are capitalized into local home prices. Our evidence supports the hypothesis. We argue that potential homeowners view HOPE eligibility percentages as an indicator of access to state resources, and this access is capitalized into home prices.

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    File URL: http://pfr.sagepub.com/content/37/2/198.abstract
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    Bibliographic Info

    Article provided by in its journal Public Finance Review.

    Volume (Year): 37 (2009)
    Issue (Month): 2 (March)
    Pages: 198-216

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    Handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:198-216

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    Related research

    Keywords: merit-based scholarship; housing prices; educational amenities;

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