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ERIC Number: ED529786
Record Type: Non-Journal
Publication Date: 2012-Jan
Pages: 59
Abstractor: As Provided
Reference Count: 57
ISBN: N/A
ISSN: N/A
Valuing School Quality Using Boundary Discontinuities. CEE DP 132
Gibbons, Stephen; Machin, Stephen; Silva, Olmo
Centre for the Economics of Education (NJ1)
Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal better quality teaching and academic value-added, or higher ability, sought-after intakes. In our research, we show decisively that value-added drives households' demand for good schooling. However, prior achievement--linked to the background of children in school--also matters. In order to identify these effects, we improve the boundary discontinuity regression methodology by matching identical properties across admissions authority boundaries; by allowing for boundary effects and spatial trends; by re-weighting our data towards transactions that are closest to district boundaries; by eliminating boundaries that coincide with major geographical features; and by submitting our estimates to a number of novel falsification tests. Our results survive this battery of experiments and show that a one-standard deviation change in either school average value-added or prior achievement raises prices by around 3%. (Contains 6 tables, 3 figures and 13 footnotes.)
Centre for the Economics of Education. London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, UK. Tel: +44-20-7955-7673; Fax: +44-20-7955-7595; e-mail: cee@lse.ac.uk; Web site: http://cee.lse.ac.uk
Publication Type: Reports - Evaluative
Education Level: Elementary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: London School of Economics & Political Science, Centre for the Economics of Education
Identifiers - Location: United Kingdom (England)