IDEAS home Printed from https://ideas.repec.org/a/taf/houspd/v26y2016i1p53-79.html
   My bibliography  Save this article

School Quality, Residential Choice, and the U.S. Housing Bubble

Author

Listed:
  • Michael Insler
  • Kurtis Swope

Abstract

Using data from the American Housing Survey (years 2001--2009), we find that purchase prices for homes selected primarily to access self-identified “good schools” rose (relative to homes selected for other reasons) during the key U.S. housing bubble period, compared with the periods before and after the bubble. We observe a similar pattern in homebuyers' mortgage-to-income ratios. Various regression specifications and propensity score matching techniques show that these trends persist conditional on a range of household, demographic, and economic controls. Our results suggest that the strong, bubble-era pursuit of good schools may have played a role in the housing bubble's expansion.

Suggested Citation

  • Michael Insler & Kurtis Swope, 2016. "School Quality, Residential Choice, and the U.S. Housing Bubble," Housing Policy Debate, Taylor & Francis Journals, vol. 26(1), pages 53-79, January.
    • Handle: RePEc:taf:houspd:v:26:y:2016:i:1:p:53-79
    DOI: 10.1080/10511482.2014.956777
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10511482.2014.956777
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10511482.2014.956777?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter J. Wallison, 2011. "Dissent from the Majority Report of the Financial Crisis Inquiry Commission," Books, American Enterprise Institute, number 50848, September.
    2. repec:aei:rpaper:26126 is not listed on IDEAS
    3. Jon H. Fiva & Lars J. Kirkebøen, 2008. "Does the Housing Market React to New Information on School Quality?," Discussion Papers 541, Statistics Norway, Research Department.
    4. repec:aei:rpbook:24944 is not listed on IDEAS
    5. Peter J. Wallison, 2011. "A dissent from the majority report of the financial crisis inquiry commission," Proceedings 1118, Federal Reserve Bank of Chicago.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert B. Avery & Kenneth P. Brevoort, 2015. "The Subprime Crisis: Is Government Housing Policy to Blame?," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 352-363, May.
    2. Veronesi, Pietro & Santos, Tano, 2016. "Habits and Leverage," CEPR Discussion Papers 11681, C.E.P.R. Discussion Papers.
    3. Kenneth P. Brevoort, 2022. "Does Giving CRA Credit for Loan Purchases Increase Mortgage Credit in Low-to-Moderate Income Communities?," Finance and Economics Discussion Series 2022-047, Board of Governors of the Federal Reserve System (U.S.).
    4. Charles W. Calomiris, 2019. "How to Promote Fed Independence: Perspectives from Political Economy and History," Journal of Applied Corporate Finance, Morgan Stanley, vol. 31(4), pages 21-42, December.
    5. Lee, Hyojung & Bostic, Raphael W., 2020. "Bank adaptation to neighborhood change: Mortgage lending and the Community Reinvestment Act," Journal of Urban Economics, Elsevier, vol. 116(C).
    6. Dwight Jaffee & John M. Quigley, 2012. "The Future of the Government-Sponsored Enterprises: The Role for Government in the U.S. Mortgage Market," NBER Chapters, in: Housing and the Financial Crisis, pages 361-417, National Bureau of Economic Research, Inc.
    7. Valentin Bolotnyy, 2014. "The Government-Sponsored Enterprises and the Mortgage Crisis: The Role of the Affordable Housing Goals," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(3), pages 724-755, September.
    8. Goodhart, Charles, 2013. "La autoridad macroprudencial: Poderes, alcance y rendición de cuentas," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 25, pages 9-28.
    9. Adam J. Levitin & Susan M. Wachter, 2013. "Why Housing?," Housing Policy Debate, Taylor & Francis Journals, vol. 23(1), pages 5-27, January.
    10. Tano Santos & Pietro Veronesi, 2016. "Leverage," NBER Working Papers 22905, National Bureau of Economic Research, Inc.
    11. Dan Immergluck, 2011. "Critical Commentary. Sub-prime Crisis, Policy Response and Housing Market Restructuring," Urban Studies, Urban Studies Journal Limited, vol. 48(16), pages 3371-3383, December.
    12. Peter J. Wallison, 2011. "Will (Should) Dodd-Frank Survive?," NFI Policy Briefs 2011-PB-02, Indiana State University, Scott College of Business, Networks Financial Institute.
    13. Volkova, O., 2018. "Fair Value in Finance: Fifty Shades of Fairness," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 85-109.
    14. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.
    15. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
    16. Jee W. Hwang & Chun Kuang & Okmyung Bin, 2019. "Are all Homeowners Willing to Pay for Better Schools? ─ Evidence from a Finite Mixture Model Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 58(4), pages 638-655, May.
    17. Calomiris Charles W, 2011. "Comment on "Implementing a Macroprudential Framework: Blending Boldness and Realism" (by Claudio Borio)," Capitalism and Society, De Gruyter, vol. 6(1), pages 1-9, August.
    18. Ishtiaq P. Mahmood & Hongjin Zhu & Akbar Zaheer, 2017. "Centralization of intragroup equity ties and performance of business group affiliates," Strategic Management Journal, Wiley Blackwell, vol. 38(5), pages 1082-1100, May.
    19. Feng, Hao & Lu, Ming, 2013. "School quality and housing prices: Empirical evidence from a natural experiment in Shanghai, China," Journal of Housing Economics, Elsevier, vol. 22(4), pages 291-307.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:houspd:v:26:y:2016:i:1:p:53-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RHPD20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.