Private Schools and the Willingness to Pay for Public Schooling
AbstractHouseholds pay a premium to live in houses assigned to high quality public schools, and the housing market yields information about the demand for public school quality. The current study estimates a two-stage house price hedonic emphasizing the role that private schools play in the willingness to pay for public school quality. The elasticity of house prices with respect to public school quality is 0.15, and 0.04 with respect to private school quality. The price elasticity of demand for public schooling is -1.72, with an income elasticity of 0.31. Public and private schools are substitutes, with a cross-price elasticity of 0.32. A school choice program that reduced private school tuition by 10 percent would reduce the willingness to pay for public school performance by 1.9 percent. The magnitude of the results generally varies markedly between large and small houses, with large houses more responsive to public and private schooling variables. © 2007 American Education Finance Association
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Education Finance and Policy.
Volume (Year): 2 (2007)
Issue (Month): 2 (February)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- James LeSage & Joni Charles, 2008. "Using home buyers’ revealed preferences to define the urban–rural fringe," Journal of Geographical Systems, Springer, vol. 10(1), pages 1-21, March.
- Christafore, David & Leguizamon, Susane, 2012. "The influence of gay and lesbian coupled households on house prices in conservative and liberal neighborhoods," Journal of Urban Economics, Elsevier, vol. 71(2), pages 258-267.
- John Yinger, 2009. "Hedonic Markets and Explicit Demands: Bid-Function Envelopes for Public Services, Neighborhood Amenities, and Commuting Costs," Center for Policy Research Working Papers 114, Center for Policy Research, Maxwell School, Syracuse University.
- Kelley Pace, R. & LeSage, James P., 2008. "A spatial Hausman test," Economics Letters, Elsevier, vol. 101(3), pages 282-284, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.