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Valuing school quality using boundary discontinuity

Gibbons, Stephen and Machin, Stephen and Silva, Olmo (2013) Valuing school quality using boundary discontinuity. Journal of Urban Economics, 75. pp. 15-28. ISSN 0094-1190

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Identification Number: 10.1016/j.jue.2012.11.001

Abstract

Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal better quality teaching and academic value-added, or higher ability, sought-after intakes. In our research, we show decisively that value-added drives households' demand for good schooling. However, prior achievement - linked to the background of children in school - also matters. 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 experiments and show that a one-standard deviation change in either school average value-added or prior achievement raises prices by around 3%.

Item Type: Article
Official URL: http://www.journals.elsevier.com/journal-of-urban-...
Additional Information: © 2012 Elsevier Inc.
Subjects: L Education > L Education (General)
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 08 Aug 2012 10:59
Last Modified: 01 Jun 2015 23:00
URI: http://eprints.lse.ac.uk/id/eprint/45246

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