Date of Award

5-15-2007

Degree Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Economics

First Advisor

Dr. Geoffrey K. Turnbull - Chair

Second Advisor

Dr. Laura O. Taylor

Third Advisor

Dr. Terry V. Grissom

Fourth Advisor

Dr. Douglas J. Krupka

Abstract

After a court imposed desegregation plan ended in 1996, the Baton Rouge, Louisiana school district created neighborhood attendance zones for its schools, followed by a series of attendance zone changes. We use data from 1994 to 2002 to examine the impact of changes in school characteristics on simultaneous determination of house prices and liquidity in the market. A simultaneous equations model of sales price and tine-on-market is adopted that extends the hedonic price model by controlling for localized neighborhood market conditions. Our empirical results show that improving and declining school performance can have asymmetric capitalization effects. Further, as indicated by the search-market model, liquidity absorbs part of the capitalization of school quality; for example, declining school performance prolongs houses’ marketing time.

DOI

https://doi.org/10.57709/1061447

Included in

Economics Commons

Share

COinS