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AMERICAN ECONOMIC REVIEW
卷 94, 期 3, 页码 591-604出版社
AMER ECONOMIC ASSOC
DOI: 10.1257/0002828041464489
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This paper investigates whether the housing market responds to the information incorporated in state-administered school grades. We study whether school grades affect families' residential locations and house prices. Using detailed data on repeated sales of individual residential properties in the state of Florida, we find evidence that there is an independent effect of these grades on house prices and residential location, above and beyond the estimated effects of test scores and the other components of the school grades. Because these grades have a large stochastic component, however, we find that over time the estimated effects of the grades has diminished.
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