Unawareness and Selective Disclosure: The Effect of School Quality Information on Property Prices

John Haisken-DeNew (), Syed Hasan, Nikhil Jha and Mathias Sinning ()
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John Haisken-DeNew: Melbourne Institute: Applied Economic and Social Research, The University of Melbourne; and Institute for the Study of Labor (IZA), http://melbourneinstitute.com/staff/jhd/default.html
Authors registered in the RePEc Author Service: John P. de New

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: The Australian Government launched the My School website in 2010 to provide standardised information about the quality of schools to the Australian public. This paper combines data from this website with home sales data for the state of Victoria to estimate the effect of the publication of school quality information on property prices. We use a difference-indifference approach to estimate the causal effect of the release of information about high-quality and low-quality schools relative to medium-quality schools in the neighbourhood and find that the release of information about high-quality schools increases property prices by 3.6 percent, whereas the release of information about low-quality schools has no significant effect. The findings indicate that many buyers are unaware of the relevance of school quality information and that real estate agents pursue a strategy of disclosing information about high-quality schools to increase the sales price. Results from a survey of Victorian real estate agents provide evidence in favor of this strategy.

Keywords: School quality; housing markets; information asymmetry; public policy evaluation; difference-in-difference estimation (search for similar items in EconPapers)
JEL-codes: D82 D84 I24 R31 (search for similar items in EconPapers)
Pages: 37pp
Date: 2017-01
New Economics Papers: this item is included in nep-edu and nep-ure
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http://melbourneinstitute.unimelb.edu.au/downloads ... series/wp2017n03.pdf (application/pdf)

Related works:
Journal Article: Unawareness and selective disclosure: The effect of school quality information on property prices (2018)
Working Paper: Unawareness and selective disclosure: The effect of school quality information on property prices (2017)
Working Paper: Unawareness and Selective Disclosure: The Effect of School Quality Information on Property Prices (2016)
Working Paper: Unawareness and Selective Disclosure: The Effect of School Quality Information on Property Prices (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2017n03

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