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How Much are Good Schools Worth? Evidence from School Acquisitions in Beijing

Author

Listed:
  • Su, Xuejuan

    (University of Alberta, Department of Economics)

  • Yu, Huayi

    (Renmin University)

Abstract

We utilize government sanctioned school acquisitions in Beijing to estimate individuals' willingness to pay for good schools. The spatial and temporal variation in these acquisitions allows us to estimate a hedonic pricing model in the difference-in-difference framework. We find that, when a regular school is acquired by a good school, the average housing price in its designated catchment area increases by seven percent, relative to other regular schools that are not acquired. We also find heterogeneous price effects for different types of acquisitions. In particular, the price premium is larger for fully integrated acquisitions than for partially integrated ones, and larger for vertical acquisitions than for horizontal ones.

Suggested Citation

  • Su, Xuejuan & Yu, Huayi, 2019. "How Much are Good Schools Worth? Evidence from School Acquisitions in Beijing," Working Papers 2019-12, University of Alberta, Department of Economics.
    • Handle: RePEc:ris:albaec:2019_012
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    References listed on IDEAS

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    1. Hegde, Shantaram & Seth, Rama & Vishwanatha, S.R., 2020. "Ownership concentration and stock returns: Evidence from family firms in India," Pacific-Basin Finance Journal, Elsevier, vol. 61(C).

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    More about this item

    Keywords

    school acquisition; housing price; hedonic pricing model; difference-in-difference;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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