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School district quality and property values: Examining differences along school district boundaries

  • Dhar, Paramita
  • Ross, Stephen L

Examining differences across school district boundaries rather than school attendance zone boundaries has several advantages. These advantages include being applicable when attendance zones are not available or less relevant to educational outcomes as arises with within district school choice and for examining the effect of factors like school spending or property taxes that do not vary within districts. However, school district boundaries have often been in place for many years allowing households to sort based on school quality and potentially creating distinct neighborhoods on either side of boundaries. We estimate models of housing prices using repeated cross-sections of housing transactions near school district boundaries in Connecticut. These models exploit changes over time to control for across boundary differences in neighborhood quality. We find significant effects of test scores on property values, but those effects are notably smaller than both OLS and traditional boundary fixed effects estimates.

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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 1 ()
Pages: 18-25

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Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:18-25
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Haurin, Donald R. & Brasington, David, 1996. "School Quality and Real House Prices: Inter- and Intrametropolitan Effects," Journal of Housing Economics, Elsevier, vol. 5(4), pages 351-368, December.
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  7. Reback, Randall, 2005. "House prices and the provision of local public services: capitalization under school choice programs," Journal of Urban Economics, Elsevier, vol. 57(2), pages 275-301, March.
  8. 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.
  9. Downes, Thomas A. & Zabel, Jeffrey E., 2002. "The impact of school characteristics on house prices: Chicago 1987-1991," Journal of Urban Economics, Elsevier, vol. 52(1), pages 1-25, July.
  10. Rohlin, Shawn M., 2011. "State minimum wages and business location: Evidence from a refined border approach," Journal of Urban Economics, Elsevier, vol. 69(1), pages 103-117, January.
  11. Eric J. Brunner & Jennifer Imazeki, 2010. "Probation Length and Teacher Salaries: Does Waiting Pay Off?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(1), pages 164-180, October.
  12. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 945-964, November.
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  14. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
  15. Carroll, Robert & Yinger, John, 1994. "Is the Property Tax a Benefit Tax? The Case of Rental Housing," National Tax Journal, National Tax Association, vol. 47(2), pages 295-316, June.
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