The Supply and Demand for Public Goods: School Quality with Hedonic House Prices and 3sls

Posted: 18 Jul 1997

See all articles by David M. Brasington

David M. Brasington

University of Cincinnati - Department of Economics

Date Written: April 24, 1997

Abstract

Public good provision is an important topic. I calculate theimplicit price of school quality from the housing marketusing a hedonic approach, then I estimate the demand andsupply of school quality. This is the first supply ofeducation quality estimation. I find a price elasticity ofsupply of 0.21. Other studies have used expenditures tomeasure demand for educational equality. I show that use ofexpenditures produces results that are inconsistent witheconomic theory; instead, employing educational outcomemeasures works much better. I also evaluate the impact ofusing 3SLS instead of single-equation techniques.

JEL Classification: odes: H41, R21, R22

Suggested Citation

Brasington, David M., The Supply and Demand for Public Goods: School Quality with Hedonic House Prices and 3sls (April 24, 1997). Available at SSRN: https://ssrn.com/abstract=9298

David M. Brasington (Contact Author)

University of Cincinnati - Department of Economics ( email )

Carl H. Lindner Hall 2925 Campus Green Drive
PO Box 0371
Cincinnati, OH 45221-0211
United States

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