Journals Information
Sociology and Anthropology Vol. 4(7), pp. 583 - 596
DOI: 10.13189/sa.2016.040709
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House Prices and School Quality: Instruments, Signaling, Usage and Perceptions
David M. Brasington *
Department of Economics, University of Cincinnati, USA
ABSTRACT
We identify commonly-available instrumental variables for housing hedonics for proficiency tests, school spending, and property taxes. We estimate the hedonic simultaneously with the reasons a person bought his house. We find larger housing value elasticities than previous studies: 0.47 for test scores, 1.07 for expenditures per pupil, and -0.37 for property taxes. We suggest schooling expenditures acts as a signaling mechanism. We find that people who use private schools and think their private school is excellent pay an additional 10% house price premium; this finding, along with capitalization of private school test scores, supports the theory of the marginal consumer.
KEYWORDS
Capitalization, House Price Hedonic, School Quality, Signaling, Theory of Marginal Consumer, Endogenous Sorting
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] David M. Brasington , "House Prices and School Quality: Instruments, Signaling, Usage and Perceptions," Sociology and Anthropology, Vol. 4, No. 7, pp. 583 - 596, 2016. DOI: 10.13189/sa.2016.040709.
(b). APA Format:
David M. Brasington (2016). House Prices and School Quality: Instruments, Signaling, Usage and Perceptions. Sociology and Anthropology, 4(7), 583 - 596. DOI: 10.13189/sa.2016.040709.