School Spending and New Construction
Regional Science and Urban Economics, Volume 63, March 2017, Pages 76-84
Posted: 6 Nov 2017
Date Written: March 1, 2017
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: Suggested Citation