How Much are Good Schools Worth? Evidence from School Acquisitions in Beijing

Xuejuan Su and Huayi Yu ()
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Huayi Yu: Renmin University

No 2019-12, Working Papers from University of Alberta, Department of Economics

Abstract: We utilize government sanctioned school acquisitions in Beijing to estimate individuals' willingness to pay for good schools. The spatial and temporal variation in these acquisitions allows us to estimate a hedonic pricing model in the difference-in-difference framework. We find that, when a regular school is acquired by a good school, the average housing price in its designated catchment area increases by seven percent, relative to other regular schools that are not acquired. We also find heterogeneous price effects for different types of acquisitions. In particular, the price premium is larger for fully integrated acquisitions than for partially integrated ones, and larger for vertical acquisitions than for horizontal ones.

Keywords: school acquisition; housing price; hedonic pricing model; difference-in-difference (search for similar items in EconPapers)
JEL-codes: H75 I28 R21 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2019-08-12
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (1)

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