The effect of school zone on housing prices: evidence from a quasi-natural experiment in New Zealand

dc.contributor.authorSun P
dc.contributor.authorCoupé T
dc.contributor.authorClark, Jeremy
dc.date.accessioned2024-11-01T01:06:35Z
dc.date.available2024-11-01T01:06:35Z
dc.date.issued2024
dc.description.abstractWe analyse a quasi-experiment where a much sought-after state secondary school with no close substitutes unexpectedly reduced its enrolment zone twice over a three-year period. We use difference-in-differences to estimate the impact of the two downsizings on housing sales prices. We use controls for housing characteristics for pooled cross section or housing fixed effects for repeat sales, test for parallel trends, and conduct numerous robustness checks. In our main analysis, we find the first downsizing may decrease housing prices between 3.2% and 12.9%, with most estimates statistically significant, while the second downsizing may decrease prices between 2.1% and 7.2%, with most estimates insignificant. Tests in the pre-treatment period suggest parallel trends cannot be rejected, though some cross section interactions are significant when the two downsizings are analysed separately. We conclude the school zone’s first downsizing likely had a negative effect on housing prices of a small to moderate magnitude.
dc.identifier.citationSun P, Coupé T, Clark J (2024). The effect of school zone on housing prices: evidence from a quasi-natural experiment in New Zealand. New Zealand Economic Papers. 58(2). 147-178.
dc.identifier.doihttp://doi.org/10.1080/00779954.2023.2226671
dc.identifier.issn0077-9954
dc.identifier.issn1943-4863
dc.identifier.urihttps://hdl.handle.net/10092/107483
dc.languageen
dc.publisherInforma UK Limited
dc.rights© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
dc.rights.urihttp://hdl.handle.net/10092/17651
dc.subjectschool housing price premium
dc.subjectdifference-in-differences
dc.subjecthedonic house pricing models
dc.subject.anzsrc33 - Built environment and design::3304 - Urban and regional planning::330403 - Housing markets, development and management
dc.subject.anzsrc38 - Economics::3802 - Econometrics::380203 - Economic models and forecasting
dc.titleThe effect of school zone on housing prices: evidence from a quasi-natural experiment in New Zealand
dc.typeJournal Article
uc.collegeUC Business School
uc.departmentDepartment of Economics and Finance
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