School Spending and New Construction

Regional Science and Urban Economics, Volume 63, March 2017, Pages 76-84

University of Cincinnati Lindner College of Business Research Paper

Posted: 6 Nov 2017

See all articles by David M. Brasington

David M. Brasington

University of Cincinnati - Department of Economics

Date Written: March 1, 2017

Abstract

School districts that vote in favor of property tax levies may signal that they are education-oriented. Through Tiebout sorting and housing developer activity, new residents might move to such communities. New retail development may occur near these new residents, and office firms that rely on high-skilled residents might be drawn too. Using regression discontinuity we find school districts that renew property tax levies have a higher value of new construction than districts that do not renew these school expenditures. School tax levy renewal is responsible for 14% of new residential construction and 25% of new commercial construction.

Keywords: School finance, Signaling, Regression discontinuity, Real estate construction, Property tax voting

JEL Classification: H27, H41, I25, R31

Suggested Citation

Brasington, David M., School Spending and New Construction (March 1, 2017). Regional Science and Urban Economics, Volume 63, March 2017, Pages 76-84; University of Cincinnati Lindner College of Business Research Paper . Available at SSRN: https://ssrn.com/abstract=3064289

David M. Brasington (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

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