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Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs

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  • Brunner, Eric J.
  • Cho, Sung-Woo
  • Reback, Randall

Abstract

In theoretical models of residential sorting, a household's location decision is closely linked to its demand for local public services, such as schooling. Since school choice programs weaken the link between residential location and schooling options, they have the potential to affect both property values and residential location choices. Results derived from computable general equilibrium models suggest these effects could be large, but there is limited empirical evidence concerning whether they actually occur. This paper develops and tests predictions concerning the impact of inter-district choice programs on housing values and residential location decisions. Our empirical results strongly confirm our theoretical predictions and the findings of the computable general equilibrium literature: after their states adopt inter-district choice programs, districts with desirable nearby, out-of-district schooling options experience relatively large increases in housing values, residential income, and population density.

Suggested Citation

  • Brunner, Eric J. & Cho, Sung-Woo & Reback, Randall, 2012. "Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs," Journal of Public Economics, Elsevier, vol. 96(7), pages 604-614.
  • Handle: RePEc:eee:pubeco:v:96:y:2012:i:7:p:604-614
    DOI: 10.1016/j.jpubeco.2012.04.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Keren Mertens Horn, 2017. "School Accountability and Residential Location Patterns: Evaluating the Unintended Consequences of No Child Left Behind," Working Papers 17-28, Center for Economic Studies, U.S. Census Bureau.
    2. Saarimaa, Tuukka & Harjunen, Oskari & Kortelainen, Mika, 2014. "Best Education Money Can Buy? Capitalization of School Quality in Finland," Working Papers 58, VATT Institute for Economic Research.
    3. Schwartz, Amy Ellen & Voicu, Ioan & Horn, Keren Mertens, 2014. "Do choice schools break the link between public schools and property values? Evidence from house prices in New York City," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 1-10.
    4. Chung, Il Hwan, 2015. "School choice, housing prices, and residential sorting: Empirical evidence from inter-and intra-district choice," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 39-49.
    5. Brasington, David & Flores-Lagunes, Alfonso & Guci, Ledia, 2016. "A spatial model of school district open enrollment choice," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 1-18.
    6. Robert Bifulco & Randall Reback, 2014. "Fiscal Impacts of Charter Schools: Lessons from New York," Education Finance and Policy, MIT Press, vol. 9(1), pages 86-107, January.
    7. Agarwal, Sumit & Rengarajan, Satyanarain & Sing, Tien Foo & Yang, Yang, 2016. "School allocation rules and housing prices: A quasi-experiment with school relocation events in Singapore," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 42-56.
    8. repec:mab:wpaper:23 is not listed on IDEAS
    9. Christopher Avery & Parag A. Pathak, 2015. "The Distributional Consequences of Public School Choice," NBER Working Papers 21525, National Bureau of Economic Research, Inc.
    10. Stephen Billings & Eric Brunner & Stephen Ross, 2014. "The Housing and Educational Consequences of the School Choice Provisions of NCLB: Evidence from Charlotte, NC," Working Papers 2014-017, Human Capital and Economic Opportunity Working Group.
    11. repec:bla:presci:v:96:y:2017:i:3:p:537-553 is not listed on IDEAS
    12. Maria Helena Guimaraes & Luis Catela Nunes & Ana Paula Barreira & Thomas Panagopoulos, 2015. "What makes people stay in or leave shrinking cities? An empirical study from Portugal," FEUNL Working Paper Series wp592, Universidade Nova de Lisboa, Faculdade de Economia.

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