NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Public School Quality Valuation Over the Business Cycle

Stuart Gabriel, Owen Hearey, Matthew E. Kahn, Ryan K. Vaughn

NBER Working Paper No. 22668
Issued in September 2016
NBER Program(s):   CH   ED

Over the years 2000 to 2013, the Los Angeles real estate market featured a boom, a bust, and then another boom. We use this variation to test how the hedonic valuation of school quality varies over the business cycle. Following Black (1999), we exploit a regression discontinuity design at elementary school attendance boundaries to test for how the implicit price of school quality changes. We find that the capitalization of school quality is counter-cyclical. While good schools always command a price premium, this premium grows during the bust. Possible mechanisms for these findings include consumers "trading down" from private to public schools during contractions as well as the effects of reduced household mobility during downturns in raising the value of the public school option.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22668

Users who downloaded this paper also downloaded* these:
Katz and Krueger w22667 The Rise and Nature of Alternative Work Arrangements in the United States, 1995-2015
Abraham, Haltiwanger, Sandusky, and Spletzer w22665 The Consequences of Long Term Unemployment: Evidence from Matched Employer-Employee Data
Cappelli and Won w22604 How You Pay Affects How You Do: Financial Aid Type and Student Performance in College
Marinescu and Rathelot w22672 Mismatch Unemployment and the Geography of Job Search
Fryer w22399 An Empirical Analysis of Racial Differences in Police Use of Force
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us