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School spending and new construction

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  • Brasington, David M.

Abstract

School districts that vote in favor of property tax levies may signal that they are education-oriented. Through Tiebout sorting and housing developer activity, new residents might move to such communities. New retail development may occur near these new residents, and office firms that rely on high-skilled residents might be drawn too. Using regression discontinuity we find school districts that renew property tax levies have a higher value of new construction than districts that do not renew these school expenditures. School tax levy renewal is responsible for 14% of new residential construction and 25% of new commercial construction.

Suggested Citation

  • Brasington, David M., 2017. "School spending and new construction," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 76-84.
    • Handle: RePEc:eee:regeco:v:63:y:2017:i:c:p:76-84
    DOI: 10.1016/j.regsciurbeco.2017.01.001
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    Cited by:

    1. Alexander W. Marré & Anil Rupasingha, 2020. "School quality and rural in‐migration: Can better rural schools attract new residents?," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 156-173, January.
    2. Gary Cornwall & Beau Sauley, 2021. "Indirect effects and causal inference: reconsidering regression discontinuity," Journal of Spatial Econometrics, Springer, vol. 2(1), pages 1-28, December.
    3. David M. Brasington, 2022. "Cutting Funding for Police Protection: The Consequences for the Size of Newly-Constructed Housing," The Journal of Real Estate Finance and Economics, Springer, vol. 65(4), pages 549-571, November.
    4. David M. Brasington & Marios Zachariadis, 2021. "Government spending and economic activity: Regression discontinuity evidence from voting on renewals of tax levies," University of Cyprus Working Papers in Economics 06-2021, University of Cyprus Department of Economics, revised 06 Dec 2020.
    5. David M. Brasington & Marios Zachariadis, 2022. "Fiscal policy and economic activity: New Causal Evidence," University of Cyprus Working Papers in Economics 09-2022, University of Cyprus Department of Economics.
    6. David M. Brasington, 2022. "Local economic growth and local government investment in parks and recreation, or five cheese pizzas for $2.6 million," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 81-95, January.
    7. Brasington, David M., 2018. "Passing school building tax levies may increase teacher salary," Economics Letters, Elsevier, vol. 163(C), pages 87-89.

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    More about this item

    Keywords

    School finance; Signaling; Regression discontinuity; Real estate construction; Property tax voting;
    All these keywords.

    JEL classification:

    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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