Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282358 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10670
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The difference-in-differences (DID) approach that identifies the capitalization of amenities through changes in housing prices has been widely used in the literature of hedonic estimation in the past decade. However, concerns have been raised about how to interpret the estimated capitalization effects as changes in welfare. Following an approach developed by Banzhaf (2021), we estimate the capitalization of school redistricting in a generalized DID framework that incorporates general equilibrium effects. When comparing estimates from our generalized DID model to the conventional DID model, we find significant differences in both the capitalization effects and welfare changes associated with the school redistricting.
Subjects: 
difference-in-differences
hedonics
welfare
school quality
JEL: 
H40
I20
R20
Document Type: 
Working Paper
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