The Impact of School Quality on Rea

The Impact of School Quality on Real House Prices:
Interjurisdictional Effects*
Donald R. Haurin
Departments of Economics and Finance
Ohio State University
1010 Derby Hall
154 N. Oval Mall
Columbus OH, 43210
David Brasington
Department of Economics
Ohio State University
431 Arps Hall
1945 N. High Street
Columbus OH, 43210
First submitted: May 30, 1996
Revised: September 13, 1996
*Acknowledgments: We thank the Center for Real Estate Education and Research at the Ohio
State University for providing funding. We also thank the referees for helpful suggestions, and
Hazel Morrow-Jones and Tom Biers for supplying the house price data. The following researchers
for the State of Ohio assisted in gathering community data: Jeffrey Knowles of the Office of
Criminal Justice Services, Julie Kasenbaum and Dave Miltko of Education Management
Information Services, and Francis Rogers of Education Policy Research.
2
Proposed Running Head:
Impact of School Quality on House Prices
Send proofs to:
Donald R. Haurin
Ohio State University
1010 Derby Hall
154 N. Oval Mall
Columbus OH, 43210
Phone: [phone]
FAX: [phone]
ABSTRACT
This study focuses on explaining variations in real constant-quality house prices in
jurisdictions located in multiple MSAs. Using a hedonic house price framework, we test competing
theories of house price determination. Using two variants of the random coefficients model, we
find that public school quality
has a very large impact on real constant-quality house prices. Our
results suggest that capitalization of school quality differences occurs on a per lot basis rather than
per square foot of land. Also important to the explanation of variations in house prices are
variables derived from urban theory, such as distance to the CBD, and from the amenity literature,
such as a community’s crime rate, arts, and recreational opportunities.
CLASSIFICATION NUMBERS: R21, I29, H22
26
Thibodeau, T. G. (1995). “House Price Indices from 1984-92 MSA Annual Housing Survey,”
J. of
Housing Res.
3
, 439-482.
Yinger, J. (1982). “Capitalization and the Theory of Local Public Finance,”
J. Polit. Econ.
90
, 917-
943.
Yinger, J., Bloom, H. S., Borsch-Supan, A., and Ladd, H. F. (1988).
Property Taxes and House
Values
. Boston, MA: Academic Press.
27
TABLE I
Descriptive Statistics
Values for the full sample of 45,236 are reported first, followed by values for the sample of 29, 718 transactions in
suburban jurisdictions.
Full Sample
Suburban Sample
Variables
Mean
Standard Dev. Mean Standard Dev.
Age (10s)
4.21
2.48
3.44
2.25
Air Conditioning
0.36
0.48
0.44
0.49
Autumn Sale
0.28
0.45
0.28
0.45
Crime Rate
0.02
0.01
0.01
0.01
Deck
0.11
0.31
0.14
0.35
Distance to CBD
8.95
6.59
12.27
5.75
Enclosed Porches
0.15
0.38
0.14
0.36
Fireplace
0.39
0.49
0.47
0.50
Full Bath
1.31
0.50
1.40
0.54
Garage Size (1000s)
0.33
0.19
0.36
0.19
House Size (1000s)
1.46
0.51
1.55
0.54
Log House Price
11.04
0.61
11.24
0.51
Lot Size (10000s)
1.06
0.89
1.26
1.00
MSA Accessibility Index
47.88
6.03
48.72
5.74
MSA Arts Index
11.56
4.50
12.13
5.56
MSA Population Growth
1.73
4.93
1.39
4.70
MSA Recreation Index
20.91
4.59
21.03
4.80
Out Buildings
0.03
0.18
0.04
0.20
Part Bath
0.35
0.49
0.44
0.52
Patio
0.21
0.41
0.25
0.43
Nonwhite Households
0.18
0.17
0.08
0.11
Pool
0.01
0.11
0.02
0.13
Property Tax Rate
35.12
6.16
35.02
6.36
Real Income
32.64
14.67
39.33
13.77
Test Score
33.71
17.98
43.17
14.85
Turnover Rate
0.48
0.08
0.47
0.09
Summer Sale
0.31
0.46
0.31
0.46
Unenclosed Porches
0.76
0.73
0.67
0.70
Winter Sale
0.24
0.43
0.23
0.42
28
TABLE II
Estimation of Real House Prices
a
Interacted Model Inte
rcept Model
Variables
Coefficient
St
andard Error
Coefficient
Standard Error
b
b
Constant
986.82**
5.7
948.77**
11.15
Age
-3.96**
0.28
-6.00**
0.29
Age-squared
-0.07**
0.03
0.06**
0.02
Lot Size
-2.60
4.29
10.12**
0.50
Lot Size Squared
-0.10**
0.01
-0.93**
0.07
House Size
43.22**
1.72
42.99**
1.66
House Size-squared
-2.88**
0.45
-2.95**
0.43
Garage Size
33.13**
2.36
34.86**
2.23
Garage Size-squared
-23.99**
3.52
-23.53**
3.24
Deck
5.52**
0.51
5.22**
0.50
Unenclosed Porches
1.62**
0.29
1.27**
0.28
Enclosed Porches
1.29**
0.52
1.62**
0.51
Fireplace
8.14**
0.41
8.12**
0.41
Air Conditioning
6.81**
0.41
6.69**
0.40
Full Bath
6.31**
0.46
6.88**
0.45
Part Bath
5.67**
0.40
5.73**
0.39
Out Buildings
0.78
0.88
1.93*
0.81
Pool
3.32**
1.30
4.30**
1.19
Patio
2.36**
0.49
2.48**
0.46

Kết quả (Việt) 1:

Tác động của các trường chất lượng vào giá thực tế nhà: Interjurisdictional tác dụng *Donald R. HaurinKhoa kinh tế và tài chínhĐại học bang Ohio1010 Derby Hall154 N. Oval MallColumbus OH, 43210David BrasingtonCục kinh tếĐại học bang Ohio431 Arps HallNăm 1945 N. High StreetColumbus OH, 43210Lần đầu tiên gửi: ngày 30 tháng 5 năm 1996Sửa đổi: 13 tháng 9 năm 1996* Acknowledgments: Chúng tôi cảm ơn Trung tâm bất động sản giáo dục và nghiên cứu tại OhioĐại học cung cấp kinh phí. Chúng tôi cũng cảm ơn các trọng tài cho gợi ý hữu ích, vàHazel Morrow-Jones và Tom Biers cho việc cung cấp các dữ liệu giá nhà. Các nhà nghiên cứu saucho tiểu bang Ohio, Hoa Kỳ hỗ trợ trong việc thu thập dữ liệu cộng đồng: Jeffrey Knowles của văn phòngDịch vụ tư pháp hình sự, Julie Kasenbaum và Dave Miltko quản lý giáo dụcDịch vụ thông tin, và Francis Rogers của nghiên cứu chính sách giáo dục.2Đề xuất đầu chạy: Tác động của các trường chất lượng vào giá nhàGửi bằng chứng để: Donald R. HaurinĐại học bang Ohio1010 Derby Hall154 N. Oval MallColumbus OH, 43210Điện thoại: [phone]FAX: [phone]TÓM TẮTNghiên cứu này tập trung vào giải thích các biến thể trong thực tế liên tục chất lượng giá nhà ởluật ở nhiều MSAs. Sử dụng một khuôn khổ giá hedonic nhà, chúng tôi có thể kiểm tra cạnh tranhlý thuyết của nhà giá xác định. Bằng cách sử dụng hai phiên bản của mô hình hệ số ngẫu nhiên, chúng tôitìm thấy rằng chất lượng trường học công cộng has a very large impact on real constant-quality house prices. Ourresults suggest that capitalization of school quality differences occurs on a per lot basis rather thanper square foot of land. Also important to the explanation of variations in house prices arevariables derived from urban theory, such as distance to the CBD, and from the amenity literature,such as a community’s crime rate, arts, and recreational opportunities. CLASSIFICATION NUMBERS: R21, I29, H2226Thibodeau, T. G. (1995). “House Price Indices from 1984-92 MSA Annual Housing Survey,” J. ofHousing Res.3, 439-482.Yinger, J. (1982). “Capitalization and the Theory of Local Public Finance,” J. Polit. Econ.90, 917-943.Yinger, J., Bloom, H. S., Borsch-Supan, A., and Ladd, H. F. (1988). Property Taxes and HouseValues. Boston, MA: Academic Press.27TABLE IDescriptive Statistics Values for the full sample of 45,236 are reported first, followed by values for the sample of 29, 718 transactions insuburban jurisdictions. Full Sample Suburban Sample Variables Mean Standard Dev. Mean Standard Dev.Age (10s) 4.212.48 3.442.25Air Conditioning 0.360.48 0.440.49Autumn Sale 0.280.45 0.280.45Crime Rate 0.020.01 0.010.01Deck 0.110.31 0.140.35Distance to CBD 8.956.5912.275.75Enclosed Porches 0.150.38 0.140.36Fireplace 0.390.49 0.470.50Full Bath 1.310.50 1.400.54Garage Size (1000s) 0.330.19 0.360.19House Size (1000s) 1.46 0.51 1.550.54Log House Price11.040.6111.240.51Lot Size (10000s) 1.060.89 1.261.00MSA Accessibility Index47.886.0348.725.74MSA Arts Index11.564.5012.135.56MSA Population Growth 1.734.93 1.394.70MSA Recreation Index 20.914.5921.034.80Out Buildings 0.030.18 0.040.20Part Bath 0.350.49 0.440.52Patio 0.210.41 0.250.43Nonwhite Households 0.180.17 0.080.11Pool 0.010.11 0.020.13Property Tax Rate35.126.1635.026.36Real Income32.6414.6739.3313.77Test Score33.7117.9843.1714.85Turnover Rate 0.480.08 0.470.09Summer Sale 0.310.46 0.310.46Unenclosed Porches 0.760.73 0.670.70Winter Sale 0.240.43 0.230.4228TABLE II Estimation of Real House Pricesa Interacted Model Intercept Model VariablesCoefficientStandard Error Coefficient Standard ErrorbbConstant986.82** 5.7948.77** 11.15 Age-3.96**0.28-6.00** 0.29Age-squared-0.07**0.03 0.06**0.02Lot Size -2.60 4.2910.12** 0.50Lot Size Squared-0.10**0.01-0.93** 0.07House Size43.22** 1.7242.99** 1.66House Size-squared-2.88**0.45-2.95** 0.43Garage Size 33.13** 2.3634.86** 2.23Garage Size-squared-23.99** 3.52-23.53** 3.24Deck 5.52**0.515.22**0.50Unenclosed Porches1.62**0.291.27**0.28Enclosed Porches 1.29**0.521.62**0.51Fireplace8.14**0.418.12**0.41Air Conditioning6.81**0.416.69**0.40Full Bath 6.31**0.466.88**0.45Part Bath 5.67**0.405.73**0.39Out Buildings 0.78 0.881.93* 0.81Pool3.32**1.304.30**1.19Patio2.36**0.492.48**0.46