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

Firmin Doko Tchatoka () and Vanessa Varvaris

Journal of Housing Economics, 2021, vol. 54, issue C

Abstract: This paper investigates the impact of primary school zoning on housing prices in Australia. Using the combination of boundary and regression discontinuity design techniques, along with an index of school academic quality and comprehensive data on both schools and housing transactions in New South Wales we find that the price of houses located in high-performing side of primary school zone boundaries is, on average, about 2.5% to 3.6% 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.

Keywords: School zoning; House prices; Boundary discontinuity design; Regression discontinuity design; Price premium (search for similar items in EconPapers)
JEL-codes: C14 C21 I24 I28 R31 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.jhe.2021.101790

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