Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69594
Authors: 
Imberman, Scott Andrew
Lovenheim, Michael
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper: Economics of Education 4105
Abstract: 
Value-added data are an increasingly common evaluation tool for schools and teachers. Many school districts have adopted these methods and released the results publicly. In this paper, we study the release of value-added data in Los Angeles by the Los Angeles Times newspaper to identify how measured value-added is capitalized into housing prices. This analysis is the first in the school valuation literature to examine property value responses to a value-added information shock, which is of interest as this measure is less correlated with demographics than typical school quality measures. Unique to this setting as well is the release of both school and teacher-level value-added data, which allows us to examine how property values respond to both types of information. Using a difference-indifferences methodology surrounding the release, we find that neither school nor teacher value-added scores are capitalized into home prices. Our results suggest that, despite the contentiousness following these data releases, homeowners do not consider value-added models as currently constructed to be a relevant school quality measure on the margin.
Subjects: 
value-added
housing prices
capitalization
school quality
JEL: 
H41
I20
R30
Document Type: 
Working Paper

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