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Does Proximity to School Still Matter Once Access to Your Preferred School Zone Has Already Been Secured?

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Abstract

This paper examines the relationship between proximity to secondary schools and property values within three school enrollment zones in Auckland, New Zealand. Results indicate that, in the most sought-after school zone, house prices increase with proximity to school but decrease above 3.664 km. Moreover, we find that the nonlinear effects are most prominent at the lower quantile of the sales price distribution. In the other two school zones, proximity to school reduces house prices. These results demonstrate that distance to school still matters within each school enrollment zone.

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Notes

  1. Papers that study school quality include Bayer et al. (2007), Black (1999), Black and Machin (2011), Bogart and Cromwell (1997, 2000), Downes and Zabel (2002), Ferreyra (2007), Gibbons et al. (2013), Nguyen-Hoang and Yinger (2011) and Weimer and Wolkoff (2001).

  2. Papers that evaluate school admission include (Brunner et al. (2012), Epple and Romano (2003), Ferreyra (2007), Machin and Salvanes (2016), Reback (2005), and Schwartz et al. (2014), and Bonilla-Mejía et al. (2020).

  3. Interaction between the schools was considered initially; however, the empirical model performs better without this interaction. All the results are available from the authors upon request.

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Acknowledgements

We gratefully acknowledge the financial support of Jiarong Stella Qian in the acquisition of the data. We would like to thank the participants of the Regional Economics Applications Laboratory seminars as well as the editor and the anonymous referees for their comments on this paper.

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Correspondence to Yi Huang.

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Appendix

Appendix

Lists of Shopping Centers and Safe-swim Beaches in Auckland

Table 7 Shopping Centers in Auckland
Fig. 2
figure 2

Predicted Log of Sales Price for Driving Distance(km)/Time(mins) to School. Note: These figures show the predicted values of log of sales price from the standard hedonic models and its 95% confidence band for the sample values of driving distances (km) and time (mins) in each school zone. Other variables were centered at their means for these plots

Fig. 3
figure 3

Quantile Plots - Predicted Log of Sales Price for Driving Distance/Time to Schools. Note: These figures show the predicted values of log of sales price from the quantile hedonic models and its 95% confidence band for the sample values of driving distances and time to the school in each school zone separately at the 10%, 50% and 90% quantiles. Other variables were centered at their mean values for these plots

Table 8 Beaches without Long-term Water Quality Alarm

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Huang, Y., Dall’erba, S. Does Proximity to School Still Matter Once Access to Your Preferred School Zone Has Already Been Secured?. J Real Estate Finan Econ 62, 548–577 (2021). https://doi.org/10.1007/s11146-020-09761-w

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