The value of neighborhood schools

This paper attempts to measure both an access effect and an externality effect of neighborhood schools on the value of surrounding residential properties. While the access effect appears to dominate, an external cost effect may have been identified as well. Using the estimated value-distance function, a downward-biased estimate of the aggregate loss in value is computed assuming that the neighborhood school is closed or that busing eliminates its neighborhood character. This loss is referred to as the value of a neighborhood school.