Download this Paper Open PDF in Browser

School Allocation Rules and Housing Prices: A Quasi-Experiment with School Relocation Events in Singapore

46 Pages Posted: 19 Jan 2014 Last revised: 30 Mar 2017

Sumit Agarwal

Georgetown University - Department of Finance

Satyanarain Rengarajan

National University of Singapore

Tien Foo Sing

National University of Singapore (NUS) - Department of Real Estate

Yang Zoe Yang

National University of Singapore (NUS) - Department of Real Estate

Date Written: October 18, 2015

Abstract

This study uses a unique distance-based priority school allocation rule in Singapore as an identification to test school relocation effects on housing prices in the school zone. Using housing samples during the period from 1999 to 2009, our main results show that private housing prices within 1-km zone and in 1-km to 2-km zone from the old school zone decline by 2.9% and 6.0%, respectively, 6 months before the school relocation events. Larger price declines of 5.5% and 6.9% for houses located in 1-km and 1-km to 2-km from the school locations are found 12 months before the school relocations. In the public housing market, we also find that school relocations cause significant housing price declines of between 0.7% and 1.4% for households living within the 1-km school zone. The school relocation treatment effects are amplified by the school popularity ranking. The prioritization in school allocation accorded to houses within 1-km school zone has significant economic value in the private housing market.

Keywords: School allocation policies, school relocation events, prioritization rule, private housing market, public housing market

JEL Classification: D1, D4, I2, R2

Suggested Citation

Agarwal, Sumit and Rengarajan, Satyanarain and Sing, Tien Foo and Yang, Yang Zoe, School Allocation Rules and Housing Prices: A Quasi-Experiment with School Relocation Events in Singapore (October 18, 2015). Available at SSRN: https://ssrn.com/abstract=2380761 or http://dx.doi.org/10.2139/ssrn.2380761

Sumit Agarwal

Georgetown University - Department of Finance ( email )

3700 O Street, NW
Washington, DC 20057
United States
202-687-8207 (Phone)

HOME PAGE: http://www.ushakrisna.com

Satyanarain Rengarajan

National University of Singapore ( email )

4 Architecture Drive
Singapore 117566
Singapore

Tien Foo Sing (Contact Author)

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Yang Yang

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Paper statistics

Downloads
130
Rank
187,436
Abstract Views
867