Seminar ‘The Real Cost of School Quality-Estimating the External Effects of Schools on House Prices'

Thursday May 23rd 2017 Mike Langen (Maastricht Univ.) will give a presentation titled ‘The Real Cost of School Quality-Estimating the External Effects of Schools on House Prices'

May 23, 2017
CPB-Office, Bezuidenhoutseweg 30, Den Haag, room 4, ‘Buntgraszaal’

Time:                   13:00-14:00 Hrs

Venue:                 CPB-Office, Bezuidenhoutseweg 30, Den Haag, room 4, ‘Buntgraszaal’

Presentation:  Mike Langen (Maastricht Univ.)

Discussant:       Joppe de Ree

Language:         English

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A valid ID-card is requested for external visitors entering the CPB-office. An estimated waiting time at the reception is 5 to 10 minutes.  Are you in possession of a ‘’Rijkspas’? If so, you can walk through directly to the seminar room, in case you filled out the following form: InterDepartementale Toegang.


Apart from direct spending, society also bears indirect costs of education, because people do not like living next to a school building. This paper analyzes the “house price – distance to a school” relationship for schools of different qualities separately. We apply a hedonic property pricing model using a unique dataset, which combines a detailed profile of all primary schools in the Netherlands with 2.3 million housing transactions over a time span of 30 years.

We find a general proximity discount of -1.3 percent. Considering quality, we find an additional effect of up to 1.2 percent for high quality schools and an additional discount of up to -1.3 percent for low quality schools. Our results show that quality and distance to schools matter equally when examining external effects on local house prices.

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