This dissertation investigates the impact of noise pollution on residential properties in the Phoenix metropolitan area. It leverages quasi-random changes in flight paths to and from Phoenix Sky Harbor Airport, focusing on the adoption of the NextGen policy and subsequent flight path reversal upon court intervention. NextGen aimed to reduce flight costs by using computer-algorithm-generated optimized flight paths. In addition to estimating the value of quiet, this dissertation analyzes the distributional welfare impacts of policies that spatially alter noise pollution exposure, residential sorting, and environmental justice. In Chapter 1, the capitalization effect of noise pollution on the housing market is examined. Findings reveal that a mere 1 decibel increase results in a 1% reduction in property values. Furthermore, the chapter examines the distributional impacts of flight path changes across various demographic and socioeconomic characteristics of residents. I find that initially, computer-generated flight paths benefited neighborhoods with a higher proportion of Black residents. However, a court-ordered reversal ultimately left them worse off than before the initial change. Chapter 2 introduces a residential sorting model designed to assess welfare effects and simulate market responses to alternative policies. The estimated average marginal willingness to pay (MWTP) to avoid noise pollution stands at $3,038 per decibel, with variations based on household demographics. Additionally, a Pigouvian tax on airplane passengers to compensate for noise pollution amounts to approximately $16 per one-way flight, notably comparable to the carbon tax for a similar journey. Various counterfactual scenarios regarding noise pollution exposure are explored to inform policy decisions. Chapter 3 addresses two challenges in using property transaction data to estimate the MWTP to residential exposure to noise pollution. First, ignoring information frictions among home buyers may bias estimates of the MWTP for an amenity. Second, changes in the amenity of interest may affect other endogenous amenities, further complicating the identification of MWTP. I address both challenges using a novel instrumental variable based on spatial variation in the salience of noise pollution caused by hourly variation in flight paths due to wind direction. I find the mean MWTP for a one-decibel reduction in noise pollution be $4,742.

This dissertation analyzes and quantifies a subset of the benefits and costs associated with residential location decisions in the housing market, and how these benefits and costs can be altered through public policy. Chapter 1 motivates and previews how I, through three essays, empirically explore this topic. Chapter 2 focuses on the benefits that neighborhoods can provide to children. I investigate whether neighborhood exposures during childhood affect academic outcomes observed at the end of high school, and whether the effects can be explained by neighborhood schools. I find that neighborhood exposures during childhood affect high-stakes standardized exam scores, 12th grade GPA, the probability of intending to attend college and the probability of dropping out of high school. By leveraging variation in the age at which students move, I estimate exposure effects that encompass the effect of neighborhood schools and other amenities. I demonstrate that these effects cannot be fully explained by conventional school quality measures based on test scores or graduation rates, which points to the potential importance of peer effects and other neighborhood amenities as complementary mechanisms. In two interrelated essays, Chapters 3 and 4 quantify the costs of housing, and how these costs are impacted by changes to federal policy. Homeownership in the US has been supported via the mortgage-interest-deduction provision of the tax code. However, US tax policy was substantially changed with the Tax Cuts and Jobs Act (TCJA) of 2017, which, by doubling the standard deduction and capping state and local tax deductions, effectively made housing more expensive relative to other types of consumption. I estimate time-varying user-costs of housing and subsidies at a fine level of geography and show that the TCJA reduced the federal housing subsidy by over 80%. I document important heterogeneity in the impacts of the policy across racial and political lines. Finally, I show that increasing the current limit on deductions of state and local taxes would have small overall impacts on subsidies, with strongly heterogeneous effects.

This dissertation explores the effect of school competition on the human capital accumulation of students. Policies that expand the scope for school choice have become increasingly popular largely due to the belief that this will create incentives for low-performing, incumbent schools to improve academic outcomes. However, there is a general lack of empirical support for these positive academic spillover effects in most contexts. In the first chapter, I demonstrate that if schools respond to competition through channels not typically considered in standard arguments in favor of school choice, it means that these policies may lead to negative, unintended consequences for academic achievement. I find that increasing the number of schools serving a given market can have a negative effect on test scores through creating incentives for schools to increase the provision of non-academic services that do not contribute to academic preparation, and through the creation of excess costs in the public school system. I use an empirical strategy designed to address strategic location decisions by new entrants as well as student selection across schools to show that entry of a new charter middle school during a recent large-scale charter expansion in North Carolina decreased average traditional public middle school test scores across a school district. The second chapter considers the extent to which policymakers have tools available to them that can improve the ability of competition to generate the increases in test scores at incumbent schools that they have prioritized. I show that the efficacy of school choice can be improved by providing short-term, partial reimbursements to public school districts for increases in charter school enrollment by resident pupils. I also demonstrate that these effects occur not only due to the direct increase in district revenue associated with reimbursements, but also because the presence of this aid reduces the incentives of school administrators to compete for students through non-academic channels. The empirical strategy that I use to generate these results leverages plausibly exogenous cutoffs for aid eligibility induced by a unique policy in the state of New York.

There is a growing consensus that environmental hazards and changing weather patterns disproportionately affect the poor, vulnerable, minority communities. My dissertation studies the nature of risk faced by vulnerable groups of individuals, how these risks affect their labor choice, income, consumption, and migration patterns. In Chapter 1, I study how seniors of different racial and income groups respond to information about hazardous waste sites in their neighborhood and their cleanup process. I find white seniors tend to move out at a higher rate when informed about the presence of a waste site as well as when the site is cleaned up compared to non-white seniors. This suggests that neighborhood gentrification exhibits inertia in the manifestation after the cleanup of Superfund sites. I find an assortative matching of seniors to neighborhoods based on their race and income, reinforcing findings in the environmental justice literature. Chapter 2 documents the effect of drought on labor choices, income, and consumption of rural households in India. I find that household consumption, as well as agricultural jobs, declines in response to drought. Further, I find that these effects are mediated by job skills and land ownership. Specifically, I find that households with working members who have completed primary education account for most of the workers who exit the agricultural sector. In contrast, I find that households with farmland increase their agricultural labor share post-drought. Cultural norms, relative prices, and land market transaction costs provide potential explanations for this behavior. Chapter 3 builds a simple model of household labor allocation based on reduced-form evidence I find in chapter 2. Simulation of the calibrated model implies that projected increases in the frequency of droughts over the next 30 years will have a net effect of a 1\% to 2\% reduction in agricultural labor. While small in percentage terms, this implies that 2.5 to 5 million individuals would leave agriculture. An increase in drought will also increase the size of the manufacturing wage subsidy needed to meet the goals of `Make in India’ policy by 20\%. This is driven by the need to incentivize landowners to reduce farm labor.

The presence of children can influence importantly how households respond to income risk. The aim of this dissertation is to study how different aspects of families' life-cycle decisions are affected by different sources of income fluctuation. In the first part of this dissertation, I study the relationships between fertility choices, consumption, and labor supply, by developing a model with endogenous fertility decisions and income volatility. Within this framework, fertility choices act as a mechanism to smooth utility over time. In this context, I analyze the insurance value of fertility choices. I use a structural model that combines two features underexplored by the literature: children as consumption commitments, and nonseparabilities of family size and consumption. Having children in the household affects consumption and labor marginal utilities, changing the insurance value of fertility decisions and generating incentives to avoid childbearing during low-income spells. I find that the welfare loss of a negative transitory income shock is 34 to 38 times larger if households are not able to choose when to have their children. These results underscore how costly unplanned childbearing can be to the household in terms of welfare.The second part of this dissertation evaluates the impact of being born under negative conditions in the labor market on human capital formation, and what parental behavior could be leading to those effects. I estimate the impact of the unemployment rates on children's assessment outcomes in cognitive and noncognitive skills. Counterintuitively, the results suggest that higher unemployment rates are linked to positive child development outcomes later in childhood. In my main specification, an increase of 1 percentage point in state unemployment causes an increase of 2.5% of a standard deviation in cognitive test scores after controlling for income at birth, hours worked at birth, and other variables.

Educational inequity – derived from disproportionate levels of resource availability and school quality – warrants examination from an economic perspective. The basket of topics pertinent to education policy today, may be characterized (mostly) into three categories, all representing key theoretical concepts of economics: supply, demand, and sorting. Furthermore, funding, teacher, and capital allocation patterns could inform the potential causal relationship between increased school demand (and resulting supply) and enhanced academic performance. My paper examines the district-level impact of positive school supply shocks – modeled via new school facility openings – on sorting and student performance on a standardized test. Applying econometric estimation techniques, my paper examines whether new school openings produce differential treatment effects in districts with separate socioeconomic composition. My methodology stems from previous research done by Cellini, Riegg, Ferreira, and Rothstein (2010), and Neilson and Zimmerman (2011). I also draw from Evans, Yoo, and Sipple (2010) to investigate an estimated version of student stability as a potential mechanism driving results. All 3 papers relate to school infrastructure and student performance. I find convincingly that test score improvements are relatively higher in districts experiencing a new school facility opening in FY 2009, than in districts without an opening. Additionally, I note treatment effect magnitude to be far smaller in districts exhibiting above-average income residents. In order to examine this finding further, I explore year-to-year changes in both pupil-to-teacher ratios and geographic mobility to characterize potential mechanisms behind this distinction. My results are consistent with research predecessors in that they suggest lower SES students benefit disproportionately from treatment and that test scores are decreasing in geographic mobility. Aside from previous research, I believe my finding that new school facilities most greatly improve student test performance in schools with lower pupil-to-teacher ratios, is unique and slightly inconsistent with the objective purpose of the new school facilities I examine. By using new school openings granted by the School Facilities Board of Arizona, I model a direct product of increased demand and am able to comment on how supply-side reactions impact high and low income districts differentially.

This paper aims to get a snapshot of charter school and public school performance in the state of California, specifically looking at high schools. Based off of data gathered on specific variables of interest and carefully constructed regression models, we are testing whether charter schools perform differently from public schools. This paper attempts to analyze results from standard OLS regression models and random effects GLS models, both with and without
interaction effects between charter schools and ethnicity and geographic area. While discussing results, this paper will also acknowledge limitations while drawing the line between correlation and causality. Our variable of interest throughout the paper is charter school, controlling for other factors that might impact API scores such as geographic area, demographics, and school
characteristics.

This paper explores the potential impact of population aging trends on support for the financing of public education using an applied theoretical approach. As demographic projections anticipate significant increases in the relative share of elderly individuals in the population, the question of how age distribution in a population effects support for public goods such as education becomes increasingly significant. Conventional wisdom suggests that an upward shift in age distribution – increasing the share of elderly individuals relative to workers – will result in decreased support for public education due to elderly individuals’ lack of utility from investments in future productivity. This paper demonstrates that such conventional wisdom does not hold in a simple two-district overlapping generations model and shows that an increasing share of elderly individuals in the population may result in increased levels of funding for education due to changes in a district’s tax base.

The model developed in this paper builds on the work of Mark Gradstein and Michael Kaganovich who demonstrated that while increasing longevity in a two-generation OLG model with two municipal districts creates a downward pressure on tax rates, this effect is dominated by changing political incentives among workers. This paper expands upon the Gradstein-Kaganovich model by introducing endogenous migration rates between districts in the model in order to reflect households’ incentives to minimize tax burden in retirement. It can be shown that as consumers’ responsiveness to differences in tax rates increases, the difference in education funding levels between districts decreases despite the difference in the relative share of elderly individuals in each population increasing. This result stems from the changes in each districts’ tax base brought on by the endogenous migration rate. Based on this finding, this study concludes that retirees function as a positive financial externality when education funding is tied to consumption levels and reaffirms Gradstein and Kaganovich’s conclusion that increasing the relative share of elderly individuals in a population does not necessarily result in decreased funding for public education as conventional wisdom would suggest.

Agent based models allow for complex results from simple parameters. The mobile agents in my model, the firms, are allocated an amount of capital, while the static agents, the workers, are allocated a range of wages. The firms are then allowed to move around and compete until they match with a worker that maximizes their production. It was found from the simulation that as competition increases so do wages. It was also found that when firms stay in the environment for longer that a higher wage is possible as a result of a larger window for drawn out competition. The different parameters result in a range of equilibriums that take variable amounts of time to reach. These results are interesting because they demonstrate that the mean wage is strongly dependent upon the window of time that firms are able to compete within. This type of model was useful because it demonstrated that there is a variation in the time dependence of the equilibrium. It also demonstrated that when there is very little entry and exiting of the market, that wage levels out at an equilibrium that is the same, regardless of the ratio between the number of firms and the number of workers. Further work to be done on this model includes the addition of a Matching Function so that firms and workers have a more fair agreement. I will also be adding parameters that allow for firms to see the workers around them so that firms are able to interact with multiple workers at the same time. Both of these alteration should improve the overall accuracy of the model.