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A Consumer Demand Approach to Estimating the Education Quality Component of Housing Cost

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  • Sofia Andreou
  • Panos Pashardes
  • Nicoletta Pashourtidou

Abstract

A consumer demand-based approach is proposed for estimating the shadow price of education relative to housing for households with children in state schools. This approach can be used together with or in place of a hedonic approach in countries where the location of households is not disclosed in publicly available data. An empirical illustration is provided using UK data from the family expenditure surveys.

Suggested Citation

  • Sofia Andreou & Panos Pashardes & Nicoletta Pashourtidou, 2011. "A Consumer Demand Approach to Estimating the Education Quality Component of Housing Cost," University of Cyprus Working Papers in Economics 09-2011, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:09-2011
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    References listed on IDEAS

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    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
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    3. Fack, Gabrielle & Grenet, Julien, 2010. "When do better schools raise housing prices? Evidence from Paris public and private schools," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 59-77, February.
    4. Buddin, Richard J. & Cordes, Joseph J. & Kirby, Sheila Nataraj, 1998. "School Choice in California: Who Chooses Private Schools?," Journal of Urban Economics, Elsevier, vol. 44(1), pages 110-134, July.
    5. Lewbel, Arthur, 1990. "Full Rank Demand Systems," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 289-300, May.
    6. Lankford, Hamilton & Wyckoff, James, 1992. "Primary and secondary school choice among public and religious alternatives," Economics of Education Review, Elsevier, vol. 11(4), pages 317-337, December.
    7. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    8. 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.
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    Keywords

    Consumer demand; hedonic analysis; school quality;
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