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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
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    References listed on IDEAS

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    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.
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    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. 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.
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    8. 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.
    9. 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.
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    11. 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.
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    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.

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