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Economist Links Test Scores to Home Values

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An abstract of "Educational Outcomes and House Values: A Test of the Value Added Approach" is available from Blackwell Synergy.

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.

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