Efficiency and Effectiveness of School Capital Investments Across The U.S.

This paper studies the impact of capital projects on student learning and the real estate market,
using nationwide data on U.S. school districts and focusing on what investments work and on
whom. We use newly collected data on school capital bonds, test scores, and house prices for 28
U.S. states and a new research design that identifies the causal impact of bond authorizations in
the presence of dynamic and heterogeneous treatment effects. On average, bond authorization
significantly raises test scores and house prices. Yet, there are large differences across bonds and
districts. Spending on infrastructure renovation and upgrades, such as HVAC or roofs, raises
test scores but not house prices; conversely, spending on athletic facilities increases house prices
but not test scores. Bond authorization is most beneficial in districts with more disadvantaged
student populations, in part because these districts prioritize bonds that improve learning. We
find suggestive evidence that capital funding rules drive differences in bond impacts.