Capitalizing Performance of 'Free' Schools and the Difficulty of Reforming School Attendance Boundaries
School attendance boundaries are a contentious issue in New Zealand, and have been relaxed and re-imposed depending upon political sentiment. Critics contend that a supposedly egalitarian state school system becomes one of selection by mortgage, with the value of ‘free’ schools capitalized into property prices. Attendance boundaries restrict the schooling opportunity set facing a student, who typically is unable to study at nearby high-performing schools if they live outside their boundary. We relate schooling opportunity sets to sales prices of over 8000 houses in Christchurch, controlling for dwelling attributes, neighborhood characteristics and geographic accessibility to a wide range of services. Our model explains over three-quarters of the variation in prices and we use this model to predict property prices if there were no attendance boundaries. Abolishing boundaries expands most schooling opportunity sets and predicted house prices generally rise. But prices would fall in some higher income neighborhoods with highly educated residents, who are likely to oppose reform of school attendance boundaries.
|Date of creation:||03 Jul 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Private Bag 3105, Hamilton, New Zealand, 3240|
Phone: + 64 (0)7 838 4758 (Administrator)
Fax: + 64 7 838 4331
Web page: http://cms.mngt.waikato.ac.nz/departments/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ian Davidoff & Andrew Leigh, 2008.
"How Much do Public Schools Really Cost? Estimating the Relationship between House Prices and School Quality,"
The Economic Record,
The Economic Society of Australia, vol. 84(265), pages 193-206, 06.
- Ian Davidoff & Andrew Leigh, 2007. "How Much Do Public Schools Really Cost? Estimating the Relationship Between House Prices and School Quality," CEPR Discussion Papers 558, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Brunner, Eric & Sonstelie, Jon, 2003. "Homeowners, property values, and the political economy of the school voucher," Journal of Urban Economics, Elsevier, vol. 54(2), pages 239-257, September.
- Clark Jeremy & Kim Bonggeun, 2012.
"The Effect of Neighborhood Diversity on Volunteering: Evidence From New Zealand,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 12(1), pages 1-49, March.
- Jeremy Clark & Bonggeun Kim, 2009. "The Effect of Neighbourhood Diversity on Volunteering: Evidence from New Zealand," Working Papers in Economics 09/09, University of Canterbury, Department of Economics and Finance.
When requesting a correction, please mention this item's handle: RePEc:wai:econwp:14/08. 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: (Brian Silverstone)
If references are entirely missing, you can add them using this form.