Can private schools slow down the capitalization of public school quality into house values ? Evidence from Shanghai
This paper uses a geographic regression discontinuity design to estimate the effect of private schools on supply efficiency and equality of elementary education supply. The study finds that private schools improve the spatial supply efficiency of elementary education significantly and reduce education inequality. The results show that private schools can markedly slow down the capitalization of public school quality into house values by 2.4 percent. This study provides an important basis for evaluating the role of social capital in elementary education. It also provides a new clue to optimize spatial allocation of elementary education resources in order to curb an overheated housing prices in specific regions.