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作者

来源

JOURNAL OF REAL ESTATE FINANCE AND ECONOMICS,Vol.58,Issue4,P.638-655

语言

英文

关键字

Home price premium; Heterogeneity; Finite mixture model; School quality; LATENT-CLASS APPROACH; HOUSE PRICES; DEMAND; QUALITY; VALUES

作者单位

[Hwang, Jee W.] Northern New Mexico Coll, Coll Business Adm, Espanola, NM 87532 USA. [Kuang, Chun; Bin, Okmyung] East Carolina Univ, Dept Econ, Greenville, NC 27858 USA. Bin, O (reprint author), East Carolina Univ, Dept Econ, Greenville, NC 27858 USA. E-Mail: bino@ecu.edu

摘要

School quality indicators such as student test scores have been shown to be capitalized into the value of local homes. The presence of households with different preferences for education implies that the implicit price of improvements in school quality might vary even within a region. In this paper, we employ a finite mixture model (FMM) to capture unobserved heterogeneity in household preferences. Using school quality and residential property sales data from Pitt County, North Carolina, we find evidence of two subpopulations of houses, where the prices for one group are virtually invariant to school quality. Consistent with recent research by Davis et al. (2017) these results indicate that heterogeneous valuation of educational quality by households with different socio-economic backgrounds should be taken into consideration when devising policies targeted at the local level.