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Capitalization of school quality into housing prices: Evidence from Boston Public School district walk zones

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  • La, Vincent

Abstract

Using Boston Public School District’s unique walk zone feature to better account for unobservables, I estimate a significant positive effect of school quality on house sale prices. This effect increases for homes more likely to be bought by families with children and diminishes in areas with already oversubscribed schools.

Suggested Citation

  • La, Vincent, 2015. "Capitalization of school quality into housing prices: Evidence from Boston Public School district walk zones," Economics Letters, Elsevier, vol. 134(C), pages 102-106.
    • Handle: RePEc:eee:ecolet:v:134:y:2015:i:c:p:102-106
    DOI: 10.1016/j.econlet.2015.07.001
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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.
    2. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    3. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2005. "The Boston Public School Match," American Economic Review, American Economic Association, vol. 95(2), pages 368-371, May.
    4. 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.
    5. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
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    Cited by:

    1. Feng Lan & Qi Wu & Tao Zhou & Huili Da, 2018. "Spatial Effects of Public Service Facilities Accessibility on Housing Prices: A Case Study of Xi’an, China," Sustainability, MDPI, vol. 10(12), pages 1-20, November.
    2. Hu, Lirong & He, Shenjing & Luo, Yun & Su, Shiliang & Xin, Jing & Weng, Min, 2020. "A social-media-based approach to assessing the effectiveness of equitable housing policy in mitigating education accessibility induced social inequalities in Shanghai, China," Land Use Policy, Elsevier, vol. 94(C).
    3. Xiao, Yue & Wen, Haizhen & Hui, Eddie C.M. & Zhou, Ganghua, 2022. "Dynamic capitalization effects of educational facilities during different market stages: An empirical study in Hangzhou, China," Land Use Policy, Elsevier, vol. 122(C).
    4. Collins, Courtney A. & Kaplan, Erin K., 2022. "Demand for School Quality and Local District Administration," Economics of Education Review, Elsevier, vol. 88(C).
    5. Kang Mo Koo & Jerry Liang, 2021. "The Effect of Bilingual Education on Housing Price-a Case Study of Bilingual School Conversion," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 629-664, May.
    6. Xiao Tian & Jin Liu & Yong Liu, 2022. "How Does the Quality of Junior High Schools Affect Housing Prices? A Quasi-Natural Experiment Based on the Admission Reform in Chengdu, China," Land, MDPI, vol. 11(9), pages 1-18, September.
    7. Livy, Mitchell R., 2017. "The effect of local amenities on house price appreciation amid market shocks: The case of school quality," Journal of Housing Economics, Elsevier, vol. 36(C), pages 62-72.

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    More about this item

    Keywords

    Housing demand; School quality; Capitalization;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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