What's in a Grade? School Report Cards and House Prices
AbstractThroughout the last decade, many states around the country have begun making public student test scores or other evaluative measures of school quality available to the general public. The most recent trends in state policies under consideration, already enacted in Florida and a n major component of George W. Bush's education platform, involve the assignment of letter grades to rate school quality. Because school quality is one of a group of local public goods purchased along with a house, one would anticipate that additional information about school quality would capitalize into real estate values. This paper takes the first look at the role that this type of added information plays in the capitalization of school quality measures. We use rich student test score and housing value data from a medium-sized Florida school district, one of the nation's 200 largest, to directly investigate this link. Using data on repeat sales of properties before and after the assignment of school letter grades, we find significant evidence that arbitrary distinctions embedded in school report cards lead to major housing price effects.
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 InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8019.
Date of creation: Nov 2000
Date of revision:
Note: CH PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- I2 - Health, Education, and Welfare - - Education
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
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.:
- Sandra E. Black, 1997.
"Do better schools matter? Parental valuation of elementary education,"
9729, Federal Reserve Bank of New York.
- Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation Of Elementary Education," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 577-599, May.
- Bogart, William T. & Cromwell, Brian A., 2000. "How Much Is a Neighborhood School Worth?," Journal of Urban Economics, Elsevier, vol. 47(2), pages 280-305, March.
- Kathy J. Hayes & Lori L. Taylor, 1996. "Neighborhood school characteristics: what signals quality to homebuyers?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 2-9.
- Brunner, Eric & Sonstelie, Jon & Thayer, Mark, 2001. "Capitalization and the Voucher: An Analysis of Precinct Returns from California's Proposition 174," Journal of Urban Economics, Elsevier, vol. 50(3), pages 517-536, November.
- Brown, Byron W & Saks, Daniel H, 1975. "The Production and Distribution of Cognitive Skills within Schools," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 571-93, June.
- Randall Reback, 2006.
"Teaching to the Rating: School Accountability and the Distribution of Student Achievement,"
0602, Barnard College, Department of Economics.
- Reback, Randall, 2008. "Teaching to the rating: School accountability and the distribution of student achievement," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1394-1415, June.
- David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
- Reback, Randall, 2008.
"Demand (and supply) in an inter-district public school choice program,"
Economics of Education Review,
Elsevier, vol. 27(4), pages 402-416, August.
- 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.
- Michael T. Owyang & Abbigail J Chiodo & Ruben Hernandez-Murillo, 2004.
"Nonlinear Hedonics and the Search for School District Quality,"
Econometric Society 2004 North American Summer Meetings
276, Econometric Society.
- Abbigail Chiodo & Rubén Hernández-Murillo & Michael T. Owyang, 2005. "Nonlinear hedonics and the search for school district quality," Working Papers 2003-039, Federal Reserve Bank of St. Louis.
- Christiana Stoddard & Peter Kuhn, 2006.
"Incentives and Effort in the Public Sector: Have U.S. Education Reforms Increased Teachers' Work Hours?,"
NBER Working Papers
11970, National Bureau of Economic Research, Inc.
- Stoddard, Christiana & Kuhn, Peter J., 2004. "Incentives and Effort in the Public Sector: Have U.S. Education Reforms Increased Teachers’ Work Hours?," IZA Discussion Papers 1412, Institute for the Study of Labor (IZA).
- Velma Zahirovic-Herbert & Geoffrey Turnbull, 2008. "School Quality, House Prices and Liquidity," The Journal of Real Estate Finance and Economics, Springer, vol. 37(2), pages 113-130, August.
- Eric A. Hanushek & Margaret E. Raymond, 2002. "Improving educational quality: how best to evaluate our schools," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue Jun, pages 193-247.
- Areendam Chanda, 2002. "Can Skill Biased Technological Progress Have a Role in the Decline of the Savings Rate?," Macroeconomics 0202004, EconWPA.
- 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.
- Brian A. Jacob & Lars Lefgren, 2005. "Principals as Agents: Subjective Performance Measurement in Education," NBER Working Papers 11463, National Bureau of Economic Research, Inc.
- David N. Figlio & Lawrence S. Getzler, 2002. "Accountability , Ability and Disability: Gaming the System," NBER Working Papers 9307, National Bureau of Economic Research, Inc.
- Thomas J. Kane & Douglas O. Staiger & Stephanie K. Riegg, 2005. "School Quality, Neighborhoods and Housing Prices: The Impacts of school Desegregation," NBER Working Papers 11347, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.