School Quality and Residential Property Values: A Review of Recent Developments and Applications

The measurement of consumers’ marginal willingness to pay for public education provides a basis for evaluating and improving existing education policies. This study reviews recent empirical studies that examined the relationship between school quality and housing prices based on a hedonic approach. We classify the existing empirical works according to their identification strategies, discuss the magnitudes of the estimated marginal willingness to pay for public education, and highlight several key aspects that need to be investigated in future research.