Information Shocks and the Dynamics of the Housing Market
Jon H. Fiva
Norwegian School of Management (BI) - Department of Economics
Lars J. Kirkebøen
Statistics Norway - Research Department
The Scandinavian Journal of Economics, Vol. 113, Issue 3, pp. 525-552, 2011
In this paper, we analyze housing‐market reactions to the release of previously unpublished information on school quality. Using high‐quality housing data, which precisely bracket the timing of the information shock, we investigate housing‐price dynamics within school‐catchment areas. We find a robust short‐term housing‐market reaction to the publication of school‐quality indicators, suggesting that this information was new to the households, and that households are willing to pay for better schools. The publication effect does not seem to be permanent as prices revert to pre‐publication levels after two to three months.
Number of Pages in PDF File: 28
Keywords: Information disclosure, hedonic methods, school quality, housing‐price dynamics, I21, I28, R21, R23Accepted Paper Series
Date posted: August 24, 2011
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