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Distribution of Demand for School Quality: Evidence from Quantile Regression

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  • Wada, Roy
  • Herbert, Zahirovic-Herbert

Abstract

Our results show that high-income families place significantly higher value on academic achievement than low-income families. High-income families are also more likely to penalize house price for non-desirable non-academic school quality. This paper uses quantile regression to examine the distribution of demand for school quality. For academic achievement, the average effects as estimated by OLS are biased toward zero due to “aggregation” of families’ willingness to pay. We take advantage of a court-ordered redistricting as a quasi-random assignment of school quality. Subdivision and school fixed-effects are used to control for unobserved characteristics.

Suggested Citation

  • Wada, Roy & Herbert, Zahirovic-Herbert, 2009. "Distribution of Demand for School Quality: Evidence from Quantile Regression," MPRA Paper 18078, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18078
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    References listed on IDEAS

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    More about this item

    Keywords

    school quality; demand; house price; quantile regression; hedonic equation;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • D1 - Microeconomics - - Household Behavior
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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