Too Late to Buy a Home? School Redistricting and the Timing and Extent of Capitalization

Ding, Xiaozhou; Bollinger, Christopher R.; Clark, Michael; Hoyt, William H.

doi:10.2139/ssrn.4071253

Cited by 1 publication

(1 citation statement)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To do this, we split the entire redistricting process into multiple periods to see how people update their beliefs about where the redistricting will take place and its impact on house prices, 7 While, as discussed in the literature cited above, there are obvious econometric advantages to using quasi-experimental approaches, including difference-in-differences, there are challenges to interpreting the findings from these approaches as welfare measures (Allen Klaiber & Kerry Smith, 2013;Banzhaf, 2021;Kuminoff & Pope, 2014). In another paper, we provide a fuller treatment of these issues and how they might be addressed (Ding et al, 2023). 8 In the case of redistricting in Shaker Heights, OH redistricting, evaluated in Bogart and Cromwell (2000), the redistricting was made public in January 1987, approved in March 1987, and implemented in September 1987.…”

Section: Distinctions Between Our Study and The Existing Literaturementioning

confidence: 99%

Too late to buy a home? School redistricting and the timing and extent of capitalization

Ding,

Bollinger,

Clark

et al. 2023

Journal of Regional Science

View full text Add to dashboard Cite

In the past 50 years, a voluminous literature estimating the value of schools through capitalization in home prices has emerged. Prior research has identified capitalization using a variety of approaches including discontinuities caused by boundaries. Here, we use changes in school boundaries and the opening of a new school in Fayette County (Lexington), Kentucky to identify this capitalization. Critical to properly estimating the effect of redistricting is to account for when information on redistricting is available. We treat the information about the effects of zoning as occurring in three stages: announcement of the intent to open the new high school and redistricting, approval of the specific redistricting plan (map), and implementation (opening of the new high school and actual changes in boundaries). We find significant changes in values for homes redistricted from lower‐performing schools and we find that this capitalization occurs well before implementation of the redistricting. As we show, failure to account for capitalization occurring before implementation will attenuate and even change the sign of capitalization.

show abstract

Section: Distinctions Between Our Study and The Existing Literaturementioning

confidence: 99%

Too late to buy a home? School redistricting and the timing and extent of capitalization

Ding,

Bollinger,

Clark

et al. 2023

Journal of Regional Science

View full text Add to dashboard Cite

show abstract

Too Late to Buy a Home? School Redistricting and the Timing and Extent of Capitalization

Cited by 1 publication

References 43 publications

Too late to buy a home? School redistricting and the timing and extent of capitalization

Too late to buy a home? School redistricting and the timing and extent of capitalization

Contact Info

Product

Resources

About