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A Unified Framework for Measuring Preferences for Schools and Neighborhoods AgEcon
Bayer, Patrick; Ferreira, Fernando; McMillan, Robert.
This paper sets out a framework for estimating household preferences over a broad range of housing and neighborhood characteristics, some of which are determined by the way that households sort in the housing market. This framework brings together the treatment of heterogeneity and selection that has been the focus of the traditional discrete choice literature with a clear strategy for dealing with the correlation of unobserved neighborhood quality with both school quality and neighborhood sociodemographics. We estimate the model using rich data on a large metropolitan area, drawn from a restricted version of the Census. The estimates indicate that, on average, households are willing to pay an additional one percent in house prices - substantially lower...
Tipo: Working or Discussion Paper Palavras-chave: Capitalization; Local public goods; School quality; Discrete choice models; Hedonic price regression; Education demand; Labor and Human Capital; D58; H0; H4; H7; I2; R21; R31.
Ano: 2003 URL: http://purl.umn.edu/28513
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