IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v37y2009i2p198-216.html
   My bibliography  Save this article

Merit-Based Scholarship ``Over-Awards'' and Home Prices

Author

Listed:
  • Noel D. Campbell

    (University of Central Arkansas)

  • Frank Smith

    (Henderson State University)

Abstract

Some Georgia school systems award more HOPE scholarships than their academic achievement predicts, creating a geographically determined benefit that will be compounded into local real estate values. Using a two-stage regression methodology, we test to see if these scholarship ``over-awards'' are capitalized into local home prices. Our evidence supports the hypothesis. We argue that potential homeowners view HOPE eligibility percentages as an indicator of access to state resources, and this access is capitalized into home prices.

Suggested Citation

  • Noel D. Campbell & Frank Smith, 2009. "Merit-Based Scholarship ``Over-Awards'' and Home Prices," Public Finance Review, , vol. 37(2), pages 198-216, March.
  • Handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:198-216
    DOI: 10.1177/1091142108321236
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1091142108321236
    Download Restriction: no

    File URL: https://libkey.io/10.1177/1091142108321236?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Brasington & Donald R. Haurin, 2006. "Educational Outcomes and House Values: A Test of the value added Approach," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 245-268, May.
    2. John Charles Bradbury & Noel D. Campbell, 2003. "Local Lobbying for State Grants: Evidence from Georgia's Hope Scholarship," Public Finance Review, , vol. 31(4), pages 367-391, July.
    3. Rubenstein, Ross & Scafidi, Benjamin, 2002. "Who Pays and Who Benefits? Examining the Distributional Consequences of the Georgia Lottery for Education," National Tax Journal, National Tax Association, vol. 55(N. 2), pages 223-238, June.
    4. David M. Brasington, 1999. "Which Measures of School Quality Does the Housing Market Value?," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 395-414.
    5. Gary T. Henry & Ross Rubenstein, 2002. "Paying for grades: Impact of merit-based financial aid on educational quality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(1), pages 93-109.
    6. Christopher Cornwell & David B. Mustard, 2007. "Merit-Based College Scholarships and Car Sales," Education Finance and Policy, MIT Press, vol. 2(2), pages 133-151, February.
    7. Christopher Cornwell & David B. Mustard & Deepa J. Sridhar, 2006. "The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Program," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 761-786, October.
    8. David M. Brasington, 2002. "The Demand for Local Public Goods: The Case of Public School Quality," Public Finance Review, , vol. 30(3), pages 163-187, May.
    9. Noel Campbell & R. Zachary Finney, 2005. "Mitigating the Combined Distributional Consequences of the Georgia Lottery for Education and the HOPE Scholarship," Social Science Quarterly, Southwestern Social Science Association, vol. 86(3), pages 746-758, September.
    10. Dee, Thomas S, 2000. "The Capitalization of Education Finance Reforms," Journal of Law and Economics, University of Chicago Press, vol. 43(1), pages 185-214, April.
    11. Rubenstein, Ross & Scafidi, Benjamin, 2002. "Who Pays and Who Benefits? Examining the Distributional Consequences of the Georgia Lottery for Education," National Tax Journal, National Tax Association;National Tax Journal, vol. 55(2), pages 223-238, June.
    12. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Retention Rules," HEW 0501001, University Library of Munich, Germany.
    13. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Scholarship Retention Rules," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 895-917.
    14. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Melissa Whatley, 2019. "Study Abroad Participation: An Unintended Consequence of State Merit-Aid Programs?," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(7), pages 905-930, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cowan, Benjamin W. & White, Dustin R., 2015. "The effects of merit-based financial aid on drinking in college," Journal of Health Economics, Elsevier, vol. 44(C), pages 137-149.
    2. Melissa Whatley, 2019. "Study Abroad Participation: An Unintended Consequence of State Merit-Aid Programs?," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(7), pages 905-930, November.
    3. Noel D. Campbell & Andres Jauregui & Kirk C. Heriot, 2008. "Housing Prices and Economic Freedom," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 23(Spring 20), pages 1-17.
    4. Brasington, David M. & Haurin, Donald R., 2009. "Parents, peers, or school inputs: Which components of school outcomes are capitalized into house value?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 523-529, September.
    5. Stadelmann, David, 2010. "Which factors capitalize into house prices? A Bayesian averaging approach," Journal of Housing Economics, Elsevier, vol. 19(3), pages 180-204, September.
    6. Joshua Angrist & Philip Oreopoulos & Tyler Williams, 2014. "When Opportunity Knocks, Who Answers?: New Evidence on College Achievement Awards," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 572-610.
    7. 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.
    8. Sjoquist, David L. & Winters, John V., 2013. "The effects of HOPE on post-college retention in the Georgia workforce," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 479-490.
    9. David Sjoquist & John Winters, 2015. "The effect of Georgia’s HOPE scholarship on college major: a focus on STEM," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    10. David L. Sjoquist & John V. Winters, 2015. "State Merit-Based Financial Aid Programs And College Attainment," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 364-390, June.
    11. Susan Dynarski, 2004. "The New Merit Aid," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 63-100, National Bureau of Economic Research, Inc.
    12. Gregory B. Upton, 2016. "The Effects of Merit-Based Scholarships on Educational Outcomes," Journal of Labor Research, Springer, vol. 37(2), pages 235-261, June.
    13. Sedgley, Norman H. & Williams, Nancy A. & Derrick, Frederick W., 2008. "The effect of educational test scores on house prices in a model with spatial dependence," Journal of Housing Economics, Elsevier, vol. 17(2), pages 191-200, June.
    14. Brasington, D. M., 2003. "The supply of public school quality," Economics of Education Review, Elsevier, vol. 22(4), pages 367-377, August.
    15. David M. Brasington & Diane Hite, 2005. "Demand for Environmental Quality: A Spatial Hedonic Approach," Departmental Working Papers 2005-08, Department of Economics, Louisiana State University.
    16. Chen, Jing & Li, Rui, 2023. "Pay for elite private schools or pay for higher housing prices? Evidence from an exogenous policy shock," Journal of Housing Economics, Elsevier, vol. 60(C).
    17. David Brasington & Don Haurin, 2005. "Capitalization of Parent, School, and Peer Group Components of School Quality into House Price," Departmental Working Papers 2005-04, Department of Economics, Louisiana State University.
    18. Eric Bettinger & Oded Gurantz & Laura Kawano & Bruce Sacerdote, 2016. "The Long Run Impacts of Merit Aid: Evidence from California’s Cal Grant," NBER Working Papers 22347, National Bureau of Economic Research, Inc.
    19. Welch, Jilleah G., 2014. "HOPE for community college students: The impact of merit aid on persistence, graduation, and earnings," Economics of Education Review, Elsevier, vol. 43(C), pages 1-20.
    20. Dynarski, Susan, 2002. "The Consequences of Merit Aid," Working Paper Series rwp02-051, Harvard University, John F. Kennedy School of Government.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:37:y:2009:i:2:p:198-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.