The capitalization of school quality into house values: A review

Phuong Nguyen-Hoang, John Yinger

Research output: Contribution to journalArticlepeer-review

203 Scopus citations


This paper provides a comprehensive review of empirical studies on the capitalization of school quality into house values that have appeared since 1999. We explore their methodological innovations and capitalization results. Most studies find significant capitalization especially for educational outputs, although the magnitudes are smaller for studies with fixed-effects estimation strategies. These studies find that house values rise by below 4% for a one-standard deviation increase in student test scores. Although major conceptual and estimation challenges remain, much progress has been made on this topic.

Original languageEnglish (US)
Pages (from-to)30-48
Number of pages19
JournalJournal of Housing Economics
Issue number1
StatePublished - Mar 2011


  • Hedonic models
  • House prices
  • School quality capitalization
  • Sorting

ASJC Scopus subject areas

  • Economics and Econometrics


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