Does the housing market react to new information on school quality?

Arbeitspapier

This paper analyzes housing market reactions to the release of previously unpublished information on school quality. Using the sharp discontinuity in the information environment allows us to study price changes within school catchment areas, thus controlling for neighborhood unobservables. We find a substantial housing market reaction to publication of school quality indicators, suggesting that households care about school quality, and may be willing to pay for better schools. The publication effect is robust to a number of sensitivity checks, but does not seem to be permanent as prices revert to prepublication levels after two to three months. We discuss this reversion in relation to the literature on behavioral finance and the concept of limited attention.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2299

Classification and Topics

• Classification: Wirtschaft ; Analysis of Education ; Education: Government Policy ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: valuation of school quality ; hedonic methods ; price reversion ; Immobilienmarkt ; Schule ; Schulauswahl ; Dienstleistungsqualität ; Bewertung ; Immobilienpreis ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fiva, Jon H. ; Kirkebøen, Lars J.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26344
• Last update: 10.03.2025, 11:44 AM CET