Abstract

http://ssrn.com/abstract=1580235
 


 



Surfing for Scores: School Quality, Housing Prices and the Changing Cost of Information


Paul E. Carrillo


George Washington University - Department of Economics

Stephanie Riegg Cellini


George Washington University - School of Public Policy and Public Administration (SPPPA)

Richard K. Green


University of Southern California - Lusk Center for Real Estate

March 16, 2010


Abstract:     
In this paper we investigate the relationship between school quality and information disclosure in housing markets. When presented with the option of identifying their local public school in a real estate listing, we find that sellers with homes assigned to higher-performing schools are more likely to provide this information, an effect that is stronger for sellers of large single-family units. Further, we find that controlling for school quality, information disclosure has no independent effect on housing prices for single-family homes, implying that buyers with a high willingness-to-pay for school quality will seek out information on school quality on their own. On the other hand, we find that sellers’ disclosures about schools have a large positive impact on the sale price of small and attached residential units in 2001-02, but the effect disappears by 2006-07. Presumably, the increasing ubiquity of the Internet and the availability of new data under No Child Left Behind dramatically reduced the cost of gathering information on school quality over this period. Taken together the results reveal substantial heterogeneity in buyers’ willingness-to-pay for information on school quality, they support the findings of the education literature on the importance of school quality in housing markets, and they confirm the “unraveling” theory of information disclosure found in other markets.

Keywords: Economics of Information, Education, House Prices

JEL Classification: D82, D83, I21, R21

working papers series


Not Available For Download

Date posted: March 31, 2010  

Suggested Citation

Carrillo, Paul E. and Cellini, Stephanie Riegg and Green, Richard K., Surfing for Scores: School Quality, Housing Prices and the Changing Cost of Information (March 16, 2010). Available at SSRN: http://ssrn.com/abstract=1580235

Contact Information

Paul E. Carrillo
George Washington University - Department of Economics ( email )
Monroe Hall Suite 340
2115 G Street NW
Washington, DC 20052
United States
Stephanie Riegg R. Cellini
George Washington University - School of Public Policy and Public Administration (SPPPA) ( email )
805 21st Street, NW
Media and Public Affairs Building, Room 602
Washington, DC 20052
United States
Richard K. Green (Contact Author)
University of Southern California - Lusk Center for Real Estate ( email )
Los Angeles, CA 90089
United States
Feedback to SSRN


Paper statistics
Abstract Views: 250

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.266 seconds