Does the Market Value Value-Added? Evidence from Housing Prices After a Public Release of School and Teacher Value-Added

Scott Imberman and Michael Lovenheim

No 19157, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Value-added data are an increasingly common evaluation tool for schools and teachers. Many school districts have adopted these methods and released the results publicly. In this paper, we study the release of value-added data in Los Angeles by the Los Angeles Times newspaper to identify how measured value-added is capitalized into housing prices. This analysis is the first in the school valuation literature to examine property value responses to a value-added information shock, which is of interest as this measure is less correlated with demographics than typical school quality measures. Unique to this setting as well is the release of both school and teacher-level value-added data, which allows us to examine how property values respond to both types of information. Using a difference-in-differences methodology surrounding the release, we find that neither school nor teacher value-added scores are capitalized into home prices. Our results suggest that, despite the contentiousness following these data releases, homeowners do not consider value-added models as currently constructed to be a relevant school quality measure on the margin.

JEL-codes: H75 I21 R21 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-ure
Note: ED PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Imberman, Scott A. & Lovenheim, Michael F., 2016. "Does the market value value-added? Evidence from housing prices after a public release of school and teacher value-added," Journal of Urban Economics, Elsevier, vol. 91(C), pages 104-121.

Downloads: (external link)
http://www.nber.org/papers/w19157.pdf (application/pdf)

Related works:
Journal Article: Does the market value value-added? Evidence from housing prices after a public release of school and teacher value-added (2016)
Working Paper: Does the Market Value Value-Added? Evidence from Housing Prices after a Public Release of School and Teacher Value-Added (2013)
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:nbr:nberwo:19157

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19157

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().