School Capital Expenditure Rules, Student Outcomes, and Real Estate Capitalization by David Schönholzer

Join us for the latest Applied Economics Research Seminar Series event, Autumn Term 2022.

David Schönholzer from the Institute for International Economic Studies, Stockholm University will present School Capital Expenditure Rules, Student Outcomes, and Real Estate Capitalization

Abstract 

School capital expenditures are a major component of public spending in the US, but there is substantial disagreement among economists and policymakers under what conditions these expenditures are a good use of funds. We use new data on school bond elections from dozens of states to estimate (a) the effects of capital expenditures on student achievement and house prices, (b) how they vary with bond and district characteristics, and (c) how they are shaped by the institutional environment. On average, we find positive effects on test scores and house prices, but with meaningful heterogeneity across bond characteristics, districts, and state institutions. We interpret these findings in a probabilistic voter model with budget-maximizing school districts. The model provides a foundation for quantitative evaluation of counterfactual political and fiscal institutions governing school capital finance.

The seminar will begin with a presentation and will end with a Q and A session.

It will be held in Economics Common room at 2pm on Thursday 13th October. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Applied Economics Research Seminar Series.