Parents, peers, or school inputs: Which components of school outcomes are capitalized into house value?

Previous research has established that people bid more for houses in high-performing school districts. But what specific factors related to school outcomes influence house prices: the parents, the peers, or the school inputs? We study the extent that house values are affected by each of the componen...

Full description

Saved in:
Bibliographic Details
Published in:Regional science and urban economics 2009-09, Vol.39 (5), p.523-529
Main Authors: Brasington, David M, Haurin, Donald R
Format: Article
Language:English
Subjects:
Academic achievement
Capitalization
Cohort analysis
Dienstleistung
Eltern
Habitus
Hedonic model
Hedonismus
House prices
House prices Hedonic model Capitalization School quality Peer effects Parental inputs
Housing prices
Immobilie
Kosten
Parental inputs
Parents & parenting
Peer effects
Peer groups
Peers
Quality of education
Qualität
School districts
School quality
Schooling
Schule
Studies
USA
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Previous research has established that people bid more for houses in high-performing school districts. But what specific factors related to school outcomes influence house prices: the parents, the peers, or the school inputs? We study the extent that house values are affected by each of the components of an education production function. Based on 123 school districts and 26,000 house transactions, we find that parental inputs are the primary component of school outcomes that are capitalized into house prices. In the explanation of variations in house prices, variations in parental characteristics are at least seven times more important than similar variations in the influence of peer groups. We find no influence on house prices from variations in school inputs. This result suggests that land values in a particular community will be increased more by attention to zoning laws that influence the mix of renters to homeowners and the type of households entering a community compared to investing in additional public school inputs.
ISSN:0166-0462
1879-2308
DOI:10.1016/j.regsciurbeco.2009.05.002