Unawareness and selective disclosure: The effect of school quality information on property prices

Author
Haisken-Denew, John · Hasan, Syed · Jha, Nikhil · Sinning, Mathias
Published 2017
  See all Details

Abstract

The Australian Government launched the My School website in 2010 to provide standardised information about the quality of schools to the Australian public. This paper combines data from this website with home sales data for the state of Victoria to estimate the effect of the publication of school quality information on property prices. We use a difference-in-difference approach to estimate the causal effect of the release of information about high-quality and low-quality schools relative to mediumquality schools in the neighborhood and find that the release of information about high-quality schools increases property prices by 3.6 percent, whereas the release of information about low-quality schools has no significant effect. The findings indicate that many buyers are unaware of the relevance of school quality information and that real estate agents pursue a strategy of disclosing information about high-quality schools to increase the sales price. Results from a survey of Victorian real estate agents provide evidence in favor of this strategy.

Reviews

Write Review

Saving... Saving... Cancel Save Cancel

Details

Title
Unawareness and selective disclosure: The effect of school quality information on property prices
Author
Haisken-Denew, John · Hasan, Syed · Jha, Nikhil · Sinning, Mathias
Year
2017
Published
2017
Type
Research Paper
Language
eng
Keywords
School Quality · Housing Markets · Information Asymmetry · Public Policy Evaluation · Difference-in-difference Estimation · Asymmetric And Private Information · Expectations · Speculations · Housing Supply And Markets
This is Version 1 of this record. We added this version on February 1, 2017. This version is based on an original data import from RePEc.