A National Study of School Spending and House Prices / Patrick Bayer, Peter Q. Blair, Kenneth Whaley.

By:

Bayer, Patrick

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w28255.Publication details: Cambridge, Mass. National Bureau of Economic Research 2020.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: We conduct the first national study of the causal impact of school spending and local taxes on housing prices by pairing variation induced by school finance reforms with 25 years of national data on housing prices. Our analysis speaks to two classic questions in economics: whether school spending matters and whether it is provided at efficient levels. The results indicate that households highly value school spending and, in particular, spending on the salaries of teachers and staff. Moreover, we find that salary spending is provided at inefficiently low levels throughout much of the United States, as increases in salary spending within a school district funded entirely by local taxes would generally raise house prices. Our analysis points to both the hiring of more teachers and increasing teacher pay as mechanisms for improving the efficiency of the provision of public schooling in the United States.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w28255 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w28252 Why is Intermediating Houses so Difficult? Evidence from iBuyers /	nber w28253 Tracking Biased Weights: Asset Pricing Implications of Value-Weighted Indexing /	nber w28254 Optimal Default Options: The Case for Opt-Out Minimization /	nber w28255 A National Study of School Spending and House Prices /	nber w28256 Public and Private Options in Practice: The Military Health System /	nber w28257 AI and Jobs: Evidence from Online Vacancies /	nber w28258 Aggregate-Demand Amplification of Supply Disruptions: The Entry-Exit Multiplier /	Next

December 2020.

We conduct the first national study of the causal impact of school spending and local taxes on housing prices by pairing variation induced by school finance reforms with 25 years of national data on housing prices. Our analysis speaks to two classic questions in economics: whether school spending matters and whether it is provided at efficient levels. The results indicate that households highly value school spending and, in particular, spending on the salaries of teachers and staff. Moreover, we find that salary spending is provided at inefficiently low levels throughout much of the United States, as increases in salary spending within a school district funded entirely by local taxes would generally raise house prices. Our analysis points to both the hiring of more teachers and increasing teacher pay as mechanisms for improving the efficiency of the provision of public schooling in the United States.