House prices and the provision of local public services: capitalization under school choice programs

Reback, Randall

doi:10.1016/j.jue.2004.10.005

Cited by 138 publications

(84 citation statements)

References 26 publications

(50 reference statements)

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“…However, our analysis is different in that we are not interested in the level of public service capitalization into property values as much as we are interested in how property values change in response to a policy shift. There are not a lot of studies that take such an approach, the only paper that we are aware of is by Reback (2005), who analyzes how property values respond to the introduction of a school choice program in Minnesota.…”

Section: Related Literaturementioning

confidence: 99%

Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

Cortes¹,

Friedson²

2014

National Tax Journal

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Texas engaged in a large-scale policy experiment when it instituted the Top 10% Plan. This policy guarantees automatic admission to their state university of choice for all high school seniors who graduate in the top decile of their high school class. We find evidence that households reacted strategically to this policy by moving to neighborhoods with lower-performing schools, increasing property values in those areas. The effect is strongest among schools that were very low-performing before the change in policy; and weaken as the previous performance of the school district increases. We also find evidence that these strategic reactions were influenced by the number of local schooling options available: areas that had fewer school choices showed no reaction to the Top 10% Plan.JEL Classifications: H31, H41, H73, I20

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Section: Related Literaturementioning

confidence: 99%

Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

Cortes¹,

Friedson²

2014

National Tax Journal

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“…3 Several papers, Bogart and Cromwell [4], Downes and Zabel [14], Kain, Staiger, and Samms [27], Kain, Staiger, and Riegg [26], Figlio and Lucas [18], and Reback [34] identify the effect of school quality on prices using variation across time that allows them to control for neighborhood quality and other time invariant factors. The results of these studies are mixed with a number of studies finding little if any impact of student test scores on property values.…”

Section: Introductionmentioning

confidence: 99%

“…The results of these studies are mixed with a number of studies finding little if any impact of student test scores on property values. 4 Some of the crosstime studies examine the effect of demographic attributes on prices with Bogart and Cromwell [4] finding no effect of race on prices while Downes and Zabel [14], Kain, Staiger, and Riegg [26], and Reback [34] finding that changes in demographic attributes are important.…”

Section: Introductionmentioning

confidence: 99%

Which school attributes matter? The influence of school district performance and demographic composition on property values

Clapp

Nanda

Ross

2008

Journal of Urban Economics

201

133

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Increasing levels of segregation in American schools raises the question: do home buyers pay for test scores or demographic composition? This paper uses Connecticut panel data spanning eleven years from 1994 to 2004 to ascertain the relationship between property values and explanatory variables that include school district performance and demographic attributes, such as racial and ethnic composition of the student body. Town and census tract fixed effects are included to control for neighborhood unobservables. The effect of changes in school district attributes is also examined over a decade long time frame in order to focus on the effect of long run changes, which are more likely to be capitalized into prices. The study finds strong evidence that increases in percent Hispanic has a negative effect on housing prices in Connecticut, but mixed evidence concerning the impact of test scores on property values. Evidence is also found to suggest that student test scores have increased in importance for explaining housing prices in recent years while the importance of percent Hispanic has declined. Finally, the study finds that estimates of property tax capitalization increase substantially when the analysis focuses on long run changes.Journal of Economic Literature Classification: D1, D4, I2, R2, R5.

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“…The overall concept of capitalisation could be summarised that every attribute/characteristic of the market can be capitalised (Oates, 1969(Oates, , 1973Pollakowski, 1973;Abelson and Markandya, 1985;Reback, 2005;Clapp et al, 2008;Stadelmann, 2010).…”

Section: Literature Review the Housing Market Attributesmentioning

confidence: 99%

“…There is a big number of very good and interesting researches studying the provision of adequate education in a school level (primary or high school level) to the residents of a housing market as well as the quality of this provision that influences the housing location choices, and therefore, the housing consumption patterns (Clapp et al, 2008;Reback, 2005;Bayer et al, 2007;Cheshire and Sheppard, 2004;Black, S.E., 1999;Gibbons et al, 2013).…”

Section: The Role Of Higher Educationmentioning

confidence: 99%

A Hedonic Model of House Prices in the Greek Islands

2013

Proceedings of the 20th Annual European Real Estate Society Conference - Vienna, Austria

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House prices and the provision of local public services: capitalization under school choice programs

Cited by 138 publications

References 26 publications

Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

Which school attributes matter? The influence of school district performance and demographic composition on property values

A Hedonic Model of House Prices in the Greek Islands

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