Is comprehensive education really free? A case study of the effects of secondary school admissions policies of house prices in one local area
Leech, Dennis and Campos, Erick (2001) Is comprehensive education really free? A case study of the effects of secondary school admissions policies of house prices in one local area. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers.
WRAP_Leech_twerp581a.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper reports on a study that tests the anecdotal hypothesis that parents are willing to pay a premium to secure places for their children in popular and oversubscribed comprehensive schools. Since many local education authorities use admissions policies based on catchment areas and places in popular schools are very hard to obtain from outside these areas - but very easy from within them - parents have an incentive to move house for the sake of their children's education. This would be expected to be reflected in house prices. The study uses a cross sectional sample based on two popular schools in one local education authority area, Coventry. Differences in housing quality are dealt with by using the technique of hedonic regression and differences in location by sample selection within a block sample design. The sample was chosen from a limited number of locations spanning different catchment areas in order to reduce both observable and unobservable variability in nuisance effects while maximising the variation in catchment areas. The results suggest that there are strong school catchment area effects. For one of the two popular schools we find a 20 percent premium and for the other a 16 percent premium on house prices ceteris paribus.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HC Economic History and Conditions
L Education > LB Theory and practice of education > LB1603 Secondary Education. High schools
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Education, Secondary -- England -- Coventry, Housing -- Prices -- England -- Coventry, Schools -- Ratings and rankings, Community and school -- England -- Coventry, High schools -- Admission|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||39|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:||Black, S. (1990), “Do Better Schools Matter? Parental Valuation of Elementary Education”, Quarterly Journal of Economics, 114, 577-99. Bradley, S. and J. Taylor (1998), “The Effect of School Size on Exam Performance in Secondary Schools”, Oxford Bulletin of Economics and Statistics, 60(3), 291-324. Brasington, D. (1999), “Which Measures of School Quality Does the Housing Market Measure?” Journal of Real Estate Research, 18 (3), 395-413. Can, A., and I. Megbolugbe (1997), “Spatial Dependence and House Price Index,” Journal of Real Estate Finance and Economics, Vol. 14, pp. 203-222. Cheshire, P. and S. Sheppard (1998), “Estimating the Demand for Housing, Land and Neighbourhood Characteristics,” Oxford Bulletin of Economics and Statistics, Vol. 60, No. 3, pp 357-82. Coventry City Council (2000), Transfer to Secondary Education in Coventry 2000: Information for parents of children attending Local Authority, Church of England and Catholic Primary Schools. Cox, D.R. and N.Reid, (2000), The Theory of the Design of Experiments, Chapman and Hall. Cropper, M. L., L. B. Deck, and K. E. McConnel (1988), “On the Choice of Functional Form for Hedonic Price Functions,” Review of Economics and Statistics, Vol. 70, Issue 4, pp. 668-675. DfES (2001), Code of Practice on School Admissions, Department for Education and Employment, London, The Stationery Office, http://www.dfes.gov.uk/sacode/. Dubin, R. A.(1998), “Predicting House Prices Using Multiple Listings Data,” Journal of Real Estate Finance and Economics, Vol. 17, Issue 1. pp. 35-59. Epple, D. (1987), “Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products,” Journal of Political Economy, Vol. 95, Issue 1, pp. 59-80. Freeman, A.M. (1979), "Hedonic Prices, Property Values and Measuring Environmental Benefits: a Survey of the Issues", Scandinavian Journal of Economics, 81(2), 154-73. Gibbons, S. and S. Machin (2001), “Valuing Primary Schools”, Working Paper, University College, London. Gill, H.L. (1983), “Changes in City and Suburban House Prices During a Period of Expected School Desegregation”, Southern Economic Journal 50(1), 169-84. Halifax (2000), "House Price Index Methodology", Halifax Bank, http://www.halifax.co.uk/default.asp?PageId=782 Haurin, D.R. and D. M.Brasington (1996), ”School Quality and Real House Prices: Inter- and Intrametropolitan Effects”, Journal of Housing Economics, 5, 351-68. Kain, J., and J. M. Quigley (1970), “Measuring the Value of Housing Quality,” Journal of the American Statistical Association, Vol. 65, Issue 330, pp. 532-48. Kim, S.(1992), “Search, Hedonic Prices and Housing Demand,” Review of Economics and Statistics, Vol. 74, Issue 3, pp. 503-08. McDonald, J.F. (1979), “Economic Analysis of an Urban Housing Market, Academic Press, New York, NY. Meese, R. A., and N. E. Wallace (1997), “The Construction of Residential Housing Price Indices: A Comparison of Repeat-Sales, Hedonic-Regression and Hybrid Approaches,” Journal of Real Estate, Finance and Economics, Vol. 14, pp. 51-73. Mills, E. S., and R. Simenauer (1996), “New Hedonic Estimates of Regional Constant Quality House Prices,” Journal of Urban Economics, Vol. 39, pp. 209-215. Nationwide (2000) "Housing Price Index Methodology", Nationwide Building Society, http://www.nationwide.co.uk/hpi/method/method.htm. Ofsted (2000), “National Summary Data Report for Secondary Schools,” 2000 Data, December, Office for Standards in Education. Palmquist, R. (1984), “Estimating the Demand for the Characteristics of Housing,” Review of Economics and Statistics, Vol. 66, Issue 3, pp. 394-404. Rosen, S. (1980), “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition,” Journal of Political Economy, Vol. 82, Issue 1, pp. 34-55. Rosenthal, L. (2000), “The Value of Secondary School Quality”, Department of Economics, University of Keele Working Paper No. 2000/06, October. Sheppard, S. (1999), “Hedonic Analysis of Housing Markets”, in Handbook of Regional and Urban Economics, Volume 3: Applied Urban Economics, edited by Paul Cheshire and Edwin Mills, Amsterdam, North Holland, 1595-1635. Shinnick, E.(1997), “Measuring Irish Housing Quality,” Journal of Economic Studies, Vol. 24, pp. 95-119. West, A., H. Pennell and P. Noden (1998), “School Admissions: Increasing Equity, Accountability an Transparency”, British Journal of Educational Studies, 46(2), June, 188-200. White, P., S. Gorard and J.Fitz (1999), “An Analysis of Local School Admissions Arrangements”, Measuring Markets: the Case of the ERA 1988, Working Paper 35, School of Social Sciences, Cardiff University. Witte, A., H. J. Sumka, and H. Erekson (1979), “An estimation of a Structural Hedonic Prices Model of the Housing Market: An application of Rosen’s Theory of Implicit Markets,” Econometrica, Vol. 47, pp. 1151-1173.|
Actions (login required)