IDEAS home Printed from https://ideas.repec.org/p/fip/feddwp/1006.html
   My bibliography  Save this paper

The impact of LIHTC program on local schools

Author

Listed:
  • Wenhua Di
  • James C. Murdoch

Abstract

The low-income housing tax credit (LIHTC) program has developed over two million rental homes for low-income households since 1986. The perception of deterioration in school quality has been a main reason for community opposition to LIHTC projects in middle-and upper-income areas. In this paper, we examine the impact of LIHTC projects on the nearby school performance. The LIHTC projects tend to have positive and statistically significant impacts on school performance the year they are placed in service and this finding is robust to various specifications. Offsetting these, the one year lag effects are negative and of similar or smaller magnitude.

Suggested Citation

  • Wenhua Di & James C. Murdoch, 2010. "The impact of LIHTC program on local schools," Working Papers 1006, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:1006
    Note: Published as: Di, Wenhua and James C. Murdoch (2013), "The Impact of LIHTC Program on Local Schools," Journal of Housing Economics 22 (4): 308-320.
    as

    Download full text from publisher

    File URL: https://www.dallasfed.org/~/media/documents/research/papers/2010/wp1006.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003. "Does peer ability affect student achievement?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 527-544.
    2. Amine Ouazad, 2008. "Assessed by a Teacher Like Me: Race, Gender and Subjective Evaluations," CEE Discussion Papers 0098, Centre for the Economics of Education, LSE.
    3. Mary A. Burke & Tim R. Sass, 2013. "Classroom Peer Effects and Student Achievement," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 51-82.
    4. Thomas J. Kane & Douglas O. Staiger, 2002. "The Promise and Pitfalls of Using Imprecise School Accountability Measures," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 91-114, Fall.
    5. Jacob Vigdor & Jens Ludwig, 2007. "Segregation and the Black-White Test Score Gap," NBER Working Papers 12988, National Bureau of Economic Research, Inc.
    6. Card, David & Rothstein, Jesse, 2007. "Racial segregation and the black-white test score gap," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2158-2184, December.
    7. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, June.
    8. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
    9. William N. Evans & Wallace E. Oates & Robert M. Schwab & William N. Evans & Wallace E. Oates & Robert M. Schwab, 2004. "Measuring Peer Group Effects: A Study of Teenage Behavior," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 13, pages 232-257, Edward Elgar Publishing.
    10. Ingrid Gould Ellen & Amy Ellen Schwartz & Ioan Voicu & Michael H. Schill, 2007. "Does federally subsidized rental housing depress neighborhood property values?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(2), pages 257-280.
    11. Kirk McClure, 2006. "The low‐income housing tax credit program goes mainstream and moves to the suburbs," Housing Policy Debate, Taylor & Francis Journals, vol. 17(3), pages 419-446.
    12. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G., 2004. "Disruption versus Tiebout improvement: the costs and benefits of switching schools," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1721-1746, August.
    13. Anna M Santiago & George C Galster & Peter Tatian, 2001. "Assessing the property value impacts of the dispersed subsidy housing program in Denver," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 65-88.
    14. Eric A. Hanushek & Margaret E. Raymond, 2005. "Does school accountability lead to improved student performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 297-327.
    15. Scafidi, Benjamin & Sjoquist, David L. & Stinebrickner, Todd R., 2007. "Race, poverty, and teacher mobility," Economics of Education Review, Elsevier, vol. 26(2), pages 145-159, April.
    16. Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
    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. Corianne Payton Scally & Richard Koenig, 2012. "Beyond NIMBY and poverty deconcentration: reframing the outcomes of affordable rental housing development," Housing Policy Debate, Taylor & Francis Journals, vol. 22(3), pages 435-461, February.

    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. Di, Wenhua & Murdoch, James C., 2013. "The impact of the low income housing tax credit program on local schools," Journal of Housing Economics, Elsevier, vol. 22(4), pages 308-320.
    2. Clifton-Sprigg, Joanna, 2014. "Educational spillovers and parental migration," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-46, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2009. "New Evidence about Brown v. Board of Education: The Complex Effects of School Racial Composition on Achievement," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 349-383, July.
    4. Clifton-Sprigg, Joanna, 2015. "Educational spillovers and parental migration," Labour Economics, Elsevier, vol. 34(C), pages 64-75.
    5. James Farrell, 2019. "Peer Effects Among Teachers: A Study of Retirement Investments," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 486-497, September.
    6. Vincent Boucher & Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2014. "Do Peers Affect Student Achievement? Evidence From Canada Using Group Size Variation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(1), pages 91-109, January.
    7. Robert Bifulco & Jason Fletcher & Stephen Ross, 2008. "The Effect of Classmate Characteristics on Individual Outcomes: Evidence from the Add Health," Working papers 2008-21, University of Connecticut, Department of Economics, revised Jan 2009.
    8. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2009. "Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence," Economic Journal, Royal Economic Society, vol. 119(540), pages 1243-1269, October.
    9. Martins, Pedro S. & Walker, Ian, 2006. "Student Achievement and University Classes: Effects of Attendance, Size, Peers, and Teachers," IZA Discussion Papers 2490, Institute of Labor Economics (IZA).
    10. Cicala, Steve & Fryer, Roland G. & Spenkuch, Jörg L., 2011. "A Roy Model of Social Interactions," MPRA Paper 29150, University Library of Munich, Germany.
    11. Ahn, Tom & Trogdon, Justin G., 2017. "Peer delinquency and student achievement in middle school," Labour Economics, Elsevier, vol. 44(C), pages 192-217.
    12. Maria De Paola & Vincenzo Scoppa, 2010. "Peer group effects on the academic performance of Italian students," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2203-2215.
    13. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.
    14. Kang, Changhui, 2007. "Classroom peer effects and academic achievement: Quasi-randomization evidence from South Korea," Journal of Urban Economics, Elsevier, vol. 61(3), pages 458-495, May.
    15. Xu Lin, 2010. "Identifying Peer Effects in Student Academic Achievement by Spatial Autoregressive Models with Group Unobservables," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 825-860, October.
    16. Adriaan R Soetevent & Peter Kooreman, 2005. "Social Ties within School Classes: The Roles of Gender, Ethnicity, and Having Older Siblings," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(3), pages 373-391, Autumn.
    17. Silvia Mendolia & Alfredo R Paloyo & Ian Walker, 2018. "Heterogeneous effects of high school peers on educational outcomes," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 613-634.
    18. Lugo, Maria Ana, 2011. "Heterogenous peer effects, segregation and academic attainment," Policy Research Working Paper Series 5718, The World Bank.
    19. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2013. "Under Pressure? The Effect of Peers on Outcomes of Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 119-153.
    20. Sund, Krister, 2009. "Estimating peer effects in Swedish high school using school, teacher, and student fixed effects," Economics of Education Review, Elsevier, vol. 28(3), pages 329-336, June.

    More about this item

    Keywords

    Housing subsidies; Housing policy; Education; Poverty;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:fip:feddwp:1006. 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: Amy Chapman (email available below). General contact details of provider: https://edirc.repec.org/data/frbdaus.html .

    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.