EconPapers    
Economics at your fingertips  
 

Valuing school quality using boundary discontinuities

Stephen Gibbons (), Stephen Machin () and Olmo Silva ()

Journal of Urban Economics, 2013, vol. 75, issue C, 15-28

Abstract: Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal higher academic value-added or higher ability, more sought-after intakes. In our research, we show that both school value-added and student prior achievement – linked to the background of children in schools – affect households’ demand for education. In order to identify these effects, we improve the boundary discontinuity regression methodology by matching identical properties across admissions authority boundaries; by allowing for boundary effects and spatial trends; by re-weighting our data towards transactions that are closest to district boundaries; by eliminating boundaries that coincide with major geographical features; and by submitting our estimates to a number of novel falsification tests. Our results survive this battery of tests and show that a one-standard deviation change in either school average value-added or prior achievement raises prices by around 3%.

Keywords: House prices; School quality; Boundary discontinuities (search for similar items in EconPapers)
JEL-codes: C21 I20 H75 R21 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094119012000769
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Valuing school quality using boundary discontinuities (2012) Downloads
Working Paper: Valuing School Quality Using Boundary Discontinuities (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:75:y:2013:i:c:p:15-28

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-04-14
Handle: RePEc:eee:juecon:v:75:y:2013:i:c:p:15-28