Uncertain School Quality and House Prices: Theory and Empirical Evidence

2017 ◽  
Vol 57 (2) ◽  
pp. 167-191 ◽  
Author(s):  
Geoffrey K. Turnbull ◽  
Velma Zahirovic-Herbert ◽  
Minrong Zheng
Keyword(s):  
Empirical Evidence ◽  
School Quality ◽  
House Prices

A hierarchical estimation of school quality capitalisation in house prices in Orange County, California

Urban Studies ◽  
2016 ◽  
Vol 54 (14) ◽  
pp. 3337-3359 ◽  
Author(s):  
Sylvia Y He
Keyword(s):  
School Quality ◽  
Orange County ◽  
House Prices ◽  
Economic Status ◽  
Academic Performance Index ◽  
Standard Deviation Increase ◽  
Spatial Understanding ◽  
Hierarchical Estimation ◽  
Good School ◽  
Residential House

Bidding for proximity to a good school can lead to a pattern of spatial distribution in which households with similar socio-economic status and willingness-to-pay for school quality cluster together. In this paper, we adopt a three-level hierarchical framework using residential house prices in Orange County, California, in 2001 and 2011, to estimate how much homebuyers pay for school quality. Our data show that, during this period, the Academic Performance Index (API) scores of elementary schools in Orange County increased by 16.4% yet converged while the house prices rose by 50.3%. The variation in house prices attributed to school district boundaries was at the same level in both years, but the variation in the API scores shrank. Using a hierarchical random effects model, our estimation results show that, on average, a 10% increase in the API raised the house prices by 1.9% in 2001 and by 3.4% in 2011. Ten years apart, a one standard deviation increase in school quality in the sample increased house prices by a surprisingly similar percentage: 2.7% in 2001, and 2.6% in 2011, respectively. Our findings also reveal that, in both years, there was a significant spatial heterogeneity of school premiums in house prices across school districts. This research provides a spatial understanding of the education capitalisation effects and sheds light on the effectiveness of urban education policy.

School Quality, House Prices and Liquidity

2007 ◽  
Vol 37 (2) ◽  
pp. 113-130 ◽  
Author(s):  
Velma Zahirovic-Herbert ◽  
Geoffrey K. Turnbull
Keyword(s):  
School Quality ◽  
House Prices

scholarly journals Uncertainty shocks and policymakers’ behavior: evidence from the subprime crisis era

2015 ◽  
Vol 42 (4) ◽  
pp. 578-607 ◽  
Author(s):  
Michael Donadelli
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
House Prices ◽  
Theoretical Framework ◽  
Subprime Crisis ◽  
Content Type ◽  
Uncertainty Shocks ◽  
The Us ◽  
Lehman Brothers ◽  
The Usa

Purpose – The purpose of this paper is to examine the effects of the 2007-2009 uncertainty shocks on policymakers’ behavior. Design/methodology/approach – Uncertainty shocks in the US credit, financial and production markets are represented by extraordinary events. As in Bloom (2009), these events are associated with significant economic and political shocks (e.g. Lehman Brothers’ collapse). Credit markets uncertainty shocks, which played a crucial role in the aftermath of the house prices collapse in the USA, are first analyzed in a bivariate VAR context, and then, embodied in a simple theoretical framework. Findings – The empirical evidence suggests that the US credit, financial and production markets have been affected by a relative large number of uncertainty shocks (i.e. rare events). In a Brainard’s (1967) uncertainty scenario, it is shown that a bizarre money-liquidity relationship exacerbates the “policymakers’ cautiousness-aggressiveness trade-off.” In addition, the model suggests that a “double” dose of policy, in presence of a global credit crunch, might be useless. Originality/value – This paper improves the existing literature in two main directions. First, it provides novel empirical evidence on the unusual dynamics of the US credit market and its effects on the real economic activity during the crisis. Second, in a very simple theoretical framework accounting for parameter uncertainty, it addresses whether a bizarre money-credit relationship affects policymakers’ behavior (i.e. cautiousness vs aggressiveness).

School Quality and Real House Prices: Inter- and Intrametropolitan Effects

1996 ◽  
Vol 5 (4) ◽  
pp. 351-368 ◽  
Author(s):  
Donald R. Haurin ◽  
David Brasington
Keyword(s):  
School Quality ◽  
House Prices
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