Gibbons, Stephen 
ORCID: 0000-0002-2871-8562, 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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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. |
| Divisions: | Geography & Environment Spatial Economics Research Centre Centre for Economic Performance |
| Subjects: | L Education > L Education (General) |
| JEL classification: | C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H75 - State and Local Government: Health, Education, and Welfare I - Health, Education, and Welfare > I2 - Education > I20 - General R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand |
| Date Deposited: | 08 Aug 2012 10:59 |
| Last Modified: | 13 Apr 2024 21:39 |
| URI: | http://eprints.lse.ac.uk/id/eprint/45246 |
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