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Neighbourhood, school zoning and the housing market: Evidence from New South Wales

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  • Firmin Doko Tchatoka

    (School of Economics, University of Adelaide)

  • Vanessa Varvaris

Abstract

This paper investigates the impact of primary school zoning on housing prices in Australia. Using comprehensive data on both schools and housing transactions in New South Wales along with the combination of boundary and regression discontinuity design techniques, we find that the price of houses located in high-performing side of primary school zone boundaries is, on average, about 2.7% to 3.3% higher than that of similar houses located in low-performing side of these boundaries. This finding provides not only an insight into the price elasticity of demand for high quality education, but also has important policy implications as it highlights the need to address the potential educational inequalities associated with school zoning in Australia.

Suggested Citation

  • Firmin Doko Tchatoka & Vanessa Varvaris, 2020. "Neighbourhood, school zoning and the housing market: Evidence from New South Wales," School of Economics and Public Policy Working Papers 2020-07, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2020-07
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    More about this item

    Keywords

    School Zoning; House Prices; Boundary Discontinuity Design; Regression Discontinuity Design; Price Premium.;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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