Advanced Search
MyIDEAS: Login to save this paper or follow this series

Using survey data to study capitalization of local public services

Contents:

Author Info

  • Fredrik Carlsen

    ()
    (Department of Economics, Norwegian University of Science and Technology)

  • Jørn Rattsø

    ()
    (Department of Economics, Norwegian University of Science and Technology)

  • Bjørg Langset

    (Research Department, Statistics Norway)

  • Lasse Stambøl

    (Research Department, Statistics Norway)

Abstract

We use surveys in which respondents evaluate local amenities in Norway to compute proxy variables for the quality of local public services as well as other local amenities relevant to location decisions. Average satisfaction reported by the respondents is computed for each amenity and each municipality, adjusted for sample variation in personal characteristics and included as explanatory variables in a cross-section study of house prices. We find that house prices are increasing in satisfaction with health care, cultural activities and public transportation, suggesting that the quality of local public services indeed affects the attractiveness of a residential site. When the analysis is repeated with input measures of service levels instead of satisfaction variables, we find no effects of local public services on house prices, indicating that traditional Tiebout studies based on input measures may have underestimated the importance of local public services for location decisions.

Download Info

If 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.
File URL: http://www.svt.ntnu.no/iso/WP/2006/17amenities_houseprices.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 8106.

as in new window
Length: 24 pages
Date of creation: 18 May 2006
Date of revision:
Handle: RePEc:nst:samfok:8106

Contact details of provider:
Postal: 7491 Trondheim
Phone: 73 59 19 40
Fax: 73 59 69 54
Email:
Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
More information through EDIRC

Related research

Keywords: Capitalization; Local public services; Survey data;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages F64-F98, February.
  2. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-93, May.
  3. Powdthavee, Nattavudh, 2003. "Unhappiness and Crime : Evidence from South Africa," The Warwick Economics Research Paper Series (TWERPS) 685, University of Warwick, Department of Economics.
  4. DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 2001. "Preferences over inflation and unemployment: Evidence from surveys of happiness," ZEI Working Papers B 03-2001, ZEI - Center for European Integration Studies, University of Bonn.
  5. Berger, Mark C. & Blomquist, Glenn C. & Peter, Klara Sabirianova, 2003. "Compensating Differentials in Emerging Labor and Housing Markets: Estimates of Quality of Life in Russian Cities," IZA Discussion Papers 900, Institute for the Study of Labor (IZA).
  6. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York.
  7. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
  8. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
  9. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Valuing Public Goods: The Life Satisfaction Approach," CESifo Working Paper Series 1158, CESifo Group Munich.
  10. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-44, February.
  11. Louis Lévy-Garboua & Youenn Loheac & Bertrand Fayolle, 2006. "Preference Formation, School Dissatisfaction and Risky Behavior of Adolescents," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00203187, HAL.
  12. Fredrik Carlsen & Kåre Johansen, 2004. "Subjective Measures of Employment Opportunities and Interregional Migration," LABOUR, CEIS, vol. 18(4), pages 563-589, December.
  13. Dahlberg, Matz & Fredriksson, Peter, 2001. "Migration and Local Public Services," Working Paper Series 2001:12, Uppsala University, Department of Economics.
  14. Thomas J. Nechyba & Robert P. Strauss, 1997. "Community Choice and Local Public Services: A Discrete Choice Approach," NBER Working Papers 5966, National Bureau of Economic Research, Inc.
  15. Michael A. Shields & Stephen Wheatley Price, . "Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession," Discussion Papers in Public Sector Economics 01/2, Department of Economics, University of Leicester.
  16. Lars-Erik Borge & Linn Renée Naper, 2005. "Efficiency potential and efficiency variation in Norwegian lower secondary schools," Working Paper Series 6205, Department of Economics, Norwegian University of Science and Technology.
  17. Bruno S. Frey & Alois Stutzer, . "Happiness, Economy and Institutions," IEW - Working Papers 015, Institute for Empirical Research in Economics - University of Zurich.
  18. Kristensen, Nicolai & Westergård-Nielsen, Niels C., 2004. "Does Low Job Satisfaction Lead to Job Mobility?," IZA Discussion Papers 1026, Institute for the Study of Labor (IZA).
  19. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  20. Joseph Gyourko & Joseph S. Tracy, 1986. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," NBER Working Papers 2040, National Bureau of Economic Research, Inc.
  21. 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.
  22. 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.
  23. David Brasington & D. Hite, . "Demand for Environmental Quality: A Spatial Hedonic Analysis," Departmental Working Papers 2003-02, Department of Economics, Louisiana State University.
  24. John M. Clapp & Anupam Nanda & Stephen L. Ross, 2005. "Which School Attributes Matter? The Influence of School District Performance and Demographic Composition on Property Values," Working papers 2005-26, University of Connecticut, Department of Economics, revised Jan 2007.
  25. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
  26. David Brasington & D. Haurin, . "Educational Outcomes and House Values: A Test of the Value-Added Approach," Departmental Working Papers 2003-05, Department of Economics, Louisiana State University.
  27. Alan B. Krueger, 2003. "Economic Considerations and Class Size," Economic Journal, Royal Economic Society, vol. 113(485), pages F34-F63, February.
  28. Akerlof, George A & Dickens, William T, 1982. "The Economic Consequences of Cognitive Dissonance," American Economic Review, American Economic Association, vol. 72(3), pages 307-19, June.
  29. Carlsen, Fredrik & Johansen, Kare, 2005. "Regional wages and subjective measures of employment opportunities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(3), pages 377-400, May.
  30. Linneman, Peter, 1980. "Some empirical results on the nature of the hedonic price function for the urban housing market," Journal of Urban Economics, Elsevier, vol. 8(1), pages 47-68, July.
  31. Stuart A. Gabriel & Joe P. Mattey & William L. Wascher, 1996. "Compensating differentials and evolution of the quality-of-life among U.S. states," Working Papers in Applied Economic Theory 96-07, Federal Reserve Bank of San Francisco.
  32. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  33. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
  34. Fredriky Carlsen, 2005. "Migration Plans, Local Fiscal Variables, and Local Economic Conditions," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(2), pages 154-, July.
  35. Arguea, Nestor M. & Hsiao, Cheng, 2000. "Market Values of Environmental Amenities: A Latent Variable Approach," Journal of Housing Economics, Elsevier, vol. 9(1-2), pages 104-126, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fredrik Carlsen & Kare Johansen & Lasse Sigbjorn Stambol, 2011. "Effects of Regional Labour Markets on Migration Flows, by Education Level," ERSA conference papers ersa10p693, European Regional Science Association.
  2. Hildegunn Stokke & Jørn Rattsø & Fredrik Carlsen, 2012. "Urban wage premium increasing with education level: Identification of agglomeration effects for Norway," ERSA conference papers ersa12p459, European Regional Science Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nst:samfok:8106. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marit Balstad Jensen) The email address of this maintainer does not seem to be valid anymore. Please ask Marit Balstad Jensen to update the entry or send us the correct address.

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.