IDEAS home Printed from
   My bibliography  Save this paper

School Quality and Property Values: Re-examining the Boundary Approach


  • Paramita Dhar

    (University of Connecticut)

  • Stephen L. Ross

    (University of Connecticut)


This paper examines the hypothesis that the strong reduction in the effect of school quality on housing prices from the inclusion of boundary fixed affects can be attributed to uncertainty associated with school assignment near attendance zone boundaries, rather than unobserved neighborhood attributes. We examine this hypothesis using repeated cross-sections of housing transactions near school district boundaries in Connecticut since these boundaries are primarily town boundaries and for the most part have not changed in many decades. However, once we control for the across boundary neighborhood quality differences that are likely to arise over time with permanent boundaries, we find fairly small effects of test scores on property values; findings that are very similar to the findings of traditional studies based on attendance zone boundaries.

Suggested Citation

  • Paramita Dhar & Stephen L. Ross, 2009. "School Quality and Property Values: Re-examining the Boundary Approach," Working papers 2009-37, University of Connecticut, Department of Economics, revised May 2010.
  • Handle: RePEc:uct:uconnp:2009-37

    Download full text from publisher

    File URL:
    File Function: Full text (revised version)
    Download Restriction: no

    File URL:
    File Function: Full text (original version)
    Download Restriction: no

    References listed on IDEAS

    1. Haurin, Donald R. & Brasington, David, 1996. "School Quality and Real House Prices: Inter- and Intrametropolitan Effects," Journal of Housing Economics, Elsevier, vol. 5(4), pages 351-368, December.
    2. Downes, Thomas A. & Zabel, Jeffrey E., 2002. "The impact of school characteristics on house prices: Chicago 1987-1991," Journal of Urban Economics, Elsevier, vol. 52(1), pages 1-25, July.
    3. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    4. Reback, Randall, 2005. "House prices and the provision of local public services: capitalization under school choice programs," Journal of Urban Economics, Elsevier, vol. 57(2), pages 275-301, March.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. David Stadelmann & Reiner Eichenberger, 2014. "Public debts capitalize into property prices: empirical evidence for a new perspective on debt incidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(3), pages 498-529, June.
    2. 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.
    3. 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.
    4. Stephen Billings & Eric Brunner & Stephen Ross, 2014. "The Housing and Educational Consequences of the School Choice Provisions of NCLB: Evidence from Charlotte, NC," Working Papers 2014-017, Human Capital and Economic Opportunity Working Group.

    More about this item


    School District Performance; Housing Price; District Boundaries; Boundary Uncertainty; Test Scores; Omitted Neighborhood Attributes.;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:uct:uconnp:2009-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark McConnel). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.