What Types of People Sort to Which Public Services?
Posted: 6 Nov 2017
Date Written: February 1, 2016
We examine the characteristics of people who say they buy their houses for environmental quality, school quality, public safety and low taxes. We find, for example, that young people and people without school-aged children are more likely to buy their house for low taxes. We estimate a house price hedonic in a system of equations that models the public services people had in mind when they bought their house. We find a housing price elasticity of 0.53 for school spending, 0.23 for maths proficiency, –0.17 for the tax rate and –0.050 for the crime rate.
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