Economist Links Test Scores to Home Values
An Ohio study suggests that high scores by public school students on state exams may help boost a community's home prices.
Donald Haurin, an economics professor at Ohio State University in Columbus, examined 77,578 house-buying transactions for the year 2000 in seven urban Ohio communities and compared them to the 4th and 9th grade test scores in those districts. On average, he found that a 20 percent increase in a district's pass rate on the state tests translated to a 7 percent increase in the home prices in that district. His study was published in the May issue of the Journal of Regional Science.