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Valuing elementary schools: evidence from public school acquisitions in Beijing

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  • Xuejuan Su
  • Huayi Yu

Abstract

We utilize government‐sanctioned public school acquisitions in Beijing to estimate individuals’ willingness to pay for enrollment eligibility in sought‐after elementary schools. The spatial and temporal variation in these acquisitions allows us to estimate a hedonic pricing model in the difference‐in‐difference framework. Comparing regular elementary schools that are acquired by sought‐after schools to those that are not, we find an average price increase of 7 percent for apartments in the catchment areas of acquired schools. This percentage increase is both statistically and economically significant, and it does not vary by the size of the apartment. We also find heterogeneous price effects for different types of acquisitions, defined by their post‐acquisition organizational structures, but these differences are not statistically significant.

Suggested Citation

  • Xuejuan Su & Huayi Yu, 2022. "Valuing elementary schools: evidence from public school acquisitions in Beijing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(4), pages 1117-1141, October.
    • Handle: RePEc:bla:scandj:v:124:y:2022:i:4:p:1117-1141
    DOI: 10.1111/sjoe.12475
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    1. Pengyu Zhu & Yi Zhang & Juan Wang, 2023. "Canceling the admission priority of private schools enlarges housing price gap in public school districts: Evidence from Shanghai's new admission policy," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(1), pages 49-67, January.

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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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