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School choice through relocation: evidence from the Washington, D.C. area

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Author Info
Lisa Barrow

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Abstract

In this paper I show how the monetary value that parents place on school quality may be inferred from their choice of residential location. The method identifies the valuation that parents place on school quality from the differential effect that measures of school quality have on the residential choices of households with and without children. I implement the method with data from the U.S. Census for Washington, D.C. using residential location decisions in 1990. For whites I find that school quality is an important determinant of residential choices and that households with children in the top income quintile are willing to pay $3,300 for schools that generate a 100 SAT point advantage. The evidence does not indicate that the choices of African Americans are influenced by school quality, which suggests that this group may be constrained in their location choices.

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Paper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-99-7.

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Date of creation: 1999
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Handle: RePEc:fip:fedhwp:wp-99-7

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Keywords: Education ; Washington (D.C.);

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416. [Downloadable!] (restricted)
  2. Cecilia Elena Rouse, 1998. "Private School Vouchers And Student Achievement: An Evaluation Of The Milwaukee Parental Choice Program," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 553-602, May. [Downloadable!] (restricted)
  3. repec:fth:prinin:338 is not listed on IDEAS
  4. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York. [Downloadable!]
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  5. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer. [Downloadable!] (restricted)
  6. Caroline Minter Hoxby, 1994. "Does Competition Among Public Schools Benefit Students and Taxpayers?," NBER Working Papers 4979, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Daniel McFadden, 1996. "Computing Willingness-to-Pay in Random Utility Models," Working Papers _011, University of California at Berkeley, Econometrics Laboratory Software Archive.
  8. Jin Huem Park, 1994. "Estimation of Sheepskin Effects and Returns to Schooling Using he Old and the New CPS Measures of Educational Attainment," Working Papers 717, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  9. Daniel McFadden, 1977. "Modelling the Choice of Residential Location," Cowles Foundation Discussion Papers 477, Cowles Foundation, Yale University. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lisa Barrow & Cecilia Elena Rouse, 2002. "Using Market Valuation to Assess Public School Spending," NBER Working Papers 9054, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Lisa Barrow & Cecilia Elena Rouse, 2000. "Using Market Valuation to Assess the Importance and Efficiency of Public School Spending," Econometric Society World Congress 2000 Contributed Papers 1446, Econometric Society. [Downloadable!]
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  3. Daniel Millimet; Vasudha Rangaprasad, 2004. "Strategic Competition Amongst Public Schools," Econometric Society 2004 North American Summer Meetings 197, Econometric Society. [Downloadable!]
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  4. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," NBER Working Papers 13236, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2003. "A Unified Framework for Estimating Preferences for Schools and Neighborhoods," Working Papers 872, Economic Growth Center, Yale University. [Downloadable!]
  6. Joydeep Roy, 2004. "Effect of a School Finance Reform on Housing Stock and Residential Segregation: Evidence from Proposal A in Michigan," Public Economics 0412004, EconWPA. [Downloadable!]
  7. Randall Reback, 2004. "Demand (and Supply) in an Inter-District Public School Choice Program," Working Papers 0501, Barnard College, Department of Economics, revised Feb 2006. [Downloadable!]
    Other versions:
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