[Solved] To What Extent is Secondary School Performance a Determinant of House Price in the England

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[Solved] To What Extent is Secondary School Performance a Determinant of House Price in the England

To What Extent is Secondary School Performance a Determinant of House Price in the England?

Literature Review

• Relevant and most recent studies

  • Large literature base in US

  • Recent UK and European studies

    • No hedonic model for Secondary Schools in UK

Metholodolgy

• Theoretical framework – hedonic model

The methodology of this study will start with a presentation of collected data in data tables. The dependant variable of the OLS regression model presented by this study will be the House Price level. Land Registry data provided by the government for average house price yearly, in £, by local authority will be used. This data can be isolated by House type and thus will make some effort to meet requirement of Rosenthal (2003) model that physical characteristic of Housing in the region must be included. This data will be regressed over the explanatory variables secondary school performance. The government measure of % students achieving 5 GCSEs above grade 5 (new marking system equivalent of High C low B grade) The data is provided by school, therefore a mean for each local authority will have to be observed. Council Tax levels will also be used as an explanatory variable between the local authority house price differences. This will be measure in £ annually. The 1^st stage regression will appear as follows:

= constant + educ + y’Zi + E

Z covers all other variables in the model

A Stata regression output will be presented and then commented on. Both the implied results for the impact of school quality on house prices regionally and the statistical significance allowed for by the results of the regression will be commented on, expecting some positive relationship between exam performance and the price of houses.

Extend model for relative characteristics – those concerning with the average characteristics of the neighbourhood the houses are in – council tax, crime, transport, employment levels.

3. Methodology structure

1. Introduction – following literature, gaps in literature = scope to investigate impact of education on price

2. Models (impericla approach/ economic model – explain origin of model. Original framework, what is different from the model now. Try to add something new to the model. Estimate different models OLS/IV, controls vsone variable approach. Discussion of IV approach. Testable approach (ambiguity). Key variable B1, expected value – draw out ambiguity

3. Endogeneity – house price and education (reverse causality)| model approach must address that point. Omitted variable bias. Minimise problem – justifying approach. Measurement error – no consensus (composite measure constructed from different studies) in extreme case no significant case – criticise other studies?

4. Sample selection – how have you approached selection – why UK? Why cross-sectional? Justify particular year – contemporary, outside of crisis? Justify size of data set – larger could be collected. Scaling of measurement, what data means for house pricing and then move on to other variable starting with education variable. Scaling issues? Source? Add line about expected relationship. Theoretical ambiguity – potential reverse relationship. Support with citation of literature.

5. Summary statistic – analysing properties of the date

   1. Descriptive stats – mean, variance for local authority data. Ranges

6. Summary and explanation – testable hypothesis

7. Next chapter link – test the hypothesis to provide empirical explanation.

8. Data Analysis

9. Results

10. Conclusions