The Capitalization Of School In Nanjing With The Hedonic Price Model

With the ever-fiercer social competition involving every social member, education has become a key means of enhancing competitiveness. Naturally, more and more attention has been put onto children’s education with increasingly soaring educational monetary input. Nowadays, a new feature emerged of the family monetary input in education-house purchase which is used as a channel to choose and invest in education. Against the backdrop of up-soaring housing prices, even though this new channel to grab high-qualified educational resources can be quite expensive, eager parents seem unlikely to be scared off by the high expense of the school district houses. Given circumstances above, it is quite obvious that real estate is playing a more and more important role in educational resources allocation. Then relevant questions comes:do the housing prices honestly reflect the quantity and quality of the local educational resources? and has China already faced with the "capitalization" of education?To find answers to these two questions, the author adopts the hedonic price model which has been widely used in the real estate market research in conducting a case study of Nanjing. By empirically analyzing the quantity and quality of the educational resources and the housing prices in eight districts of Nanjing Jiangnan, the author finds out that:the quantity of educational resources has an unstable impact on housing prices, and the quality of educational resources holds a significant positive correlation with housing prices. In other words, as the exporter of high-quality education, the exemplary schools have immense influence on the prices of the adjacent houses.In addition, the author also conducts a comparative analysis on the relations between education and housing prices in main districts of Nanjing. And the analytical result shows that there are disparate degrees of educational "capitalization" in main districts of Nanjing. By further deepening the analysis on this issue, the author reaches two conclusions:1) a district’s educational "capitalization" degree can be promoted with the emergence of the private schools;2) in the rental market, the quality of educational resources holds a significant positive correlation with the rent, which is quite similar to phenomenon in the second-hand housing market. The only difference lies in the unstable impact of the quantity of educational resources on housing prices.As for the understanding of the educational "capitalization", a dialectical perspective should be adopted. On the one hand, the educational "capitalization" promotes the realization of high effective allocation of educational resources which enables high income family to gain high-quality educational resources; on the other hand, the educational "capitalization" has tilted the fair balance of educational resources allocation which expels children of low-income families out of the domain of high-quality education.Thus, to regain the balance point of high-efficiency and fairness of educational resources allocation, shared community efforts should be spared.