A unified framework for measuring preferences for schools and neighborhoods.

Autor/inn/en	Bayer, Patrick J.; Ferreira, Fernando Vendramel; McMillan, Robert
Titel	A unified framework for measuring preferences for schools and neighborhoods.
Quelle	New Haven, CT: Economic Growth Center, Yale University (2003), ca. 70 S. PDF als Volltext kostenfreie Datei (1); PDF als Volltext kostenfreie Datei (2) Link als defekt meldenVerfügbarkeit
Reihe	Center discussion paper / Economic Growth Center. 872
Beigaben	Illustrationen
Sprache	englisch
Dokumenttyp	online; gedruckt; Monographie; Graue Literatur
Schlagwörter	Schule; Region; Wohnen; Hedonismus; Öffentliches Gut; Preisindex; Arbeitspapier; Präferenz; Theorie; San Francisco, Calif.
Abstract	This paper sets out a framework for estimating household preferences over a broad range of housing and neighborhood characteristics, some of which are determined by the way that households sort in the housing market. This framework brings together the treatment of heterogeneity and selection that has been the focus of the traditional discrete choice literature with a clear strategy for dealing with the correlation of unobserved neighborhood quality with both school quality and neighborhood sociodemographics. We estimate the model using rich data on a large metropolitan area, drawn from a restricted version of the Census. The estimates indicate that, on average, households are willing to pay an additional one percent in house prices - substantially lower than in prior work - when the average performance of the local school is increased by 5 percent. There is also evidence of considerable preference heterogeneity. We also show that the full capitalization of school quality into housing prices is typically 70-75 percent greater than the direct effect as the result of a social multiplier, neglected in the prior literature, whereby increases in school quality also raises prices by attracting households with more education and income to the corresponding neighborhood.
Erfasst von	ZBW - Leibniz-Informationszentrum Wirtschaft, Kiel
Update	2006/4