Date of Award
Doctor of Philosophy (PhD)
Dr. Geoffrey K. Turnbull - Chair
Dr. Laura O. Taylor
Dr. Terry V. Grissom
Dr. Douglas J. Krupka
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.
Zahirovic-Herbert, Velma, "School Quality, House Prices, and Liquidity: The Effects of Public School Reform in Baton Rouge" (2007). Economics Dissertations. Paper 30.