school choice in suburbia public school testing and private real estate markets l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
School Choice in Suburbia: Public School Testing and Private Real Estate Markets PowerPoint Presentation
Download Presentation
School Choice in Suburbia: Public School Testing and Private Real Estate Markets

Loading in 2 Seconds...

play fullscreen
1 / 31

School Choice in Suburbia: Public School Testing and Private Real Estate Markets - PowerPoint PPT Presentation


  • 220 Views
  • Uploaded on

School Choice in Suburbia: Public School Testing and Private Real Estate Markets Jack Dougherty, Jeffrey Harrelson, Laura Maloney, Drew Murphy, Michael Snow, Russell Smith, and Diane Zannoni Cities, Suburbs, and Schools Research Project Trinity College, Hartford CT

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'School Choice in Suburbia: Public School Testing and Private Real Estate Markets' - sandra_john


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
school choice in suburbia public school testing and private real estate markets

School Choice in Suburbia:Public School Testing andPrivate Real Estate Markets

Jack Dougherty, Jeffrey Harrelson,

Laura Maloney, Drew Murphy,

Michael Snow, Russell Smith, and Diane Zannoni

Cities, Suburbs, and Schools Research Project

Trinity College, Hartford CT

http://www.trincoll.edu/depts/educ/CSS

AERA meeting, April 2007

slide2

Question: How much more do homebuyers pay to choose a house on the higher-scoring side of a school boundary?

slide3

Question: How much more do homebuyers pay to choose a house on the higher-scoring side of a school boundary?

Public School Attendance Boundary

West School Attendance Area

East School Attendance Area

B

A

Study uses econometric analysis

slide4

Question: How much more do homebuyers pay to choose a house on the higher-scoring side of a school boundary?

Public School Attendance Boundary

West School Attendance Area

East School Attendance Area

B

A

Study uses econometric analysis to control for

- house characteristics

slide5

Question: How much more do homebuyers pay to choose a house on the higher-scoring side of a school boundary?

Public School Attendance Boundary

West School Attendance Area

East School Attendance Area

Test Scores

Test Scores

B

A

Study uses econometric analysis to control for

- house characteristics

- school quality

slide6

Question: How much more do homebuyers pay to choose a house on the higher-scoring side of a school boundary?

Public School Attendance Boundary

West School Attendance Area

East School Attendance Area

Test Scores

Test Scores

B

A

Study uses econometric analysis to control for

- house characteristics

- school quality

- neighborhood effects

slide7

Context of the Study:

West Hartford, CT

- one public school district with 11 elementary (K-5)

- 28 school boundaries

slide9

A boundary close-up:

- all single-family homes sold during our study period (1996 - 2005)

slide10

A school attendance boundary close-up:

- all single-family homes sold during our study period (1996 - 2005)

- Neighborhood around a shared school attendance boundary

house price function of house characteristics school quality neighborhood effects13
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
house price function of house characteristics school quality neighborhood effects14
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
  • Number of bedrooms, bathrooms, lot size, internal footage
house price function of house characteristics school quality neighborhood effects15
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
  • Number of bedrooms, bathrooms, lot size, internal footage
  • Percent of 4th graders at goal on CT Mastery Test (CMT), as data appeared in newspaper graphics & internet
house price function of house characteristics school quality neighborhood effects16
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
  • Number of bedrooms, bathrooms, lot size, internal footage
  • Percent of 4th graders at goal on CT Mastery Test (CMT), as data appeared in newspaper graphics & internet

Hartford Courant 1999

house price function of house characteristics school quality neighborhood effects17
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
  • Number of bedrooms, bathrooms, lot size, internal footage
  • Percent of 4th graders at goal on CT Mastery Test (CMT), as data appeared in newspaper graphics & internet
  • Set of neighborhood dummy variables (rather than imperfect census data), to account for unobservable neighborhood characteristics, and to avoid omitted variable bias
house price function of house characteristics school quality neighborhood effects18
House Price = function of (house characteristics, school quality, neighborhood effects)
  • Logarithm of price of house, deflated to year 2000 dollars, using price index of average sales in West Hartford
  • Number of bedrooms, bathrooms, lot size, internal footage
  • Percent of 4th graders at goal on CT Mastery Test (CMT), as data appeared in newspaper graphics & internet
  • Set of neighborhood dummy variables (rather than imperfect census data), to account for unobservable neighborhood characteristics, and to avoid omitted variable bias

Sample = 8,736 single-family home sales, 1996-2005

mean home price = $198,300 (in year 2000 dollars)

mean test score = 73% (standard deviation 12 pct points)

slide19
Results: 1) Geographic Restriction & Variable Distance Analysis

2) Time Period Analysis (1996-2000 vs. 2001-2005)

3) Neighborhood Progression Analysis

slide20

What was test-price relationship when we used increasingly restrictive geography?

- Gradually eliminated school boundaries that followed rivers, parks, and major 4-lane roads, leaving behind only those drawn through residential areas (Set D)

Results: 1) Geographic Restriction & Variable Distance Analysis

slide21

What was test-price relationship when we varied the sample by distance to the school boundary?

Results: 1) Geographic Restriction & Variable Distance Analysis

slide22

What was test-price relationship when we varied the sample by distance to the school boundary?

Results: 1) Geographic Restriction & Variable Distance Analysis

slide23

What was test-price relationship when we varied the sample by distance to the school boundary?

Results: 1) Geographic Restriction & Variable Distance Analysis

slide24

Regression Results for Most Restrictive Geography (Set D),Variable Distance of 0.15 miles, for all time periods (1996-05)(Heteroskedastic-adjusted standard errors; t-statistics in parentheses)Dependent Variable = ln (house price)

Results: 1) Geographic Restriction & Variable Distance Analysis

Interpretation:

A 12 percentage point increase in test scores* is associated with a $5,065 increase in average home price**

*One standard deviation

**In year 2000 dollars

slide25

Results: 2) Time Period Analysis (1996 - 2005)

Pre-2000: Test data availability limited; reported annually in local newspaper

Post-2000: Test data more widely and instantly available on various websites

Expanded on S. Black’s analysis by using a 10-year sample, which allowed us to ask:

How did test-price relationship change

from pre-2000 to post-2000 period?

slide26

Results: 2) Time Period Analysis (1996 - 2005)

Regression Results for most restrictive geography (Set D), for houses located within 0.15 mile from boundary(Heteroskedastic-adjusted standard errors; t-statistics in parentheses)Dependent Variable = ln (house price)

Interpretation:

A 12 percentage point increase in test scores* is associated with an average increase in home price**

Pre-2000: $2,244

Post-2000: $8,060

*One standard deviation

**In year 2000 dollars

slide27

Results: 3) Neighborhood Progression Analysis

What if test scores are capturing not the effect of school quality on home prices, but rather some quality change in neighborhood, from worse to better, which is captured in the prices of homes?

slide28

Results: 3) Neighborhood Progression Analysis

What if test scores are capturing not the effect of school quality on home prices, but rather some quality change in neighborhood, from worse to better, which is captured in the prices of homes?

Test by comparing actual versus artificial school attendance areas:

slide29

Results: 3) Neighborhood Progression Analysis

Regression Results for most restrictive geography (Set D), for all time periods

(Heteroskedastic-adjusted standard errors; t-statistics in parentheses)

Dependent Variable = ln (house price)

Interpretation

Test scores do matter at elementary school attendance boundaries

slide30

Discussion:

  • - In West Hartford, homebuyers grew more sensitive to test scores as data became more readily available over time
  • See parallel qualitative study (Ramsay 2006), interviewed 89 homebuyers on social construction of school quality
  • Further research on school racial composition, influence of middle & high school zones, and role of real estate agents
slide31

Discussion:

  • - In West Hartford, homebuyers grew more sensitive to test scores as data became more readily available over time
  • See parallel qualitative study (Ramsay 2006), interviewed 89 homebuyers on social construction of school quality
  • Further research on school racial composition, influence of middle & high school zones, and role of real estate agents

This paper and others available at

www.trincoll.edu/depts/educ/CSS