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Does School District and Municipality Border Congruence Matter? A Spatial Hedonic Approach

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  • Joshua C. Hall

    (Department of Economics, West Virginia University)

Abstract

Research on zoning typically assumes city planners aim to maximize housing prices with their land use decisions, either explicitly for public choice reasons or implicitly through the approval of land uses that create local net benefits. Noncongruence of school district and municipality borders severs the link between costs and benefits in the eyes of the median voter, however, which could result in excessive residential development and fiscal externalities that lowers property values. This paper uses a hedonic approach to indirectly observe the presence of these externalities. Border congruency between school districts and municipalities in Ohio is measured using GIS data and matched with a data set of 56,717 home sales. The hedonic results indicate that noncongruence is associated with lower housing prices, while the degree of noncongruence is positively related. For most school districts, the negative effect of noncongruency dominates. My results are robust and consistent across different model specifications and empirical approaches.

Suggested Citation

  • Joshua C. Hall, 2013. "Does School District and Municipality Border Congruence Matter? A Spatial Hedonic Approach," Working Papers 13-02, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:13-02
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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1079&context=econ_working-papers
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    Cited by:

    1. Susane Leguizamon, 2010. "The Influence of Reference Group House Size on House Price," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(3), pages 507-527, September.
    2. Daphne Kenyon & Robert Wassmer & Adam Langley & Bethany Paquin, 2020. "The Effects of Property Tax Abatements on School District Property Tax Bases and Rates," Economic Development Quarterly, , vol. 34(3), pages 227-241, August.

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    More about this item

    Keywords

    congruence; local government structure; hedonic; spatial Durbin;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I2 - Health, Education, and Welfare - - Education

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