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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

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Do Parents Value Changes in Test Scores? High Stakes Testing in Texas

Angela K. Dills1

1Clemson University,

Citation Information: Contributions in Economic Analysis & Policy. Volume 3, Issue 1, ISSN (Online) 1538-0645, DOI: 10.2202/1538-0645.1230, August 2004

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This article offers supplementary material which is provided at the end of the article.


Texas evaluates, accredits, and financially rewards schools based on student test scores. Test scores increased dramatically following this implementation of high stakes testing. This paper examines whether homebuyers valued these test score increases. The results show little or no relation between changes in test scores and changes in total housing value in a district. Strikingly, improved performance on college entrance exams is associated with increased total housing value. Using the college entrance exams as a benchmark, the results on the state test suggest that high stakes testing failed to increase perceived school quality.

Keywords: accountability; house prices; education

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