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Instant Winners: Legal Change in Transition and the Diffusion of State Lotteries

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  • Jackson, John D
  • Saurman, David S
  • Shughart, William F, II

Abstract

This paper investigates the determinants of legal change in a public choice framework. An empirical model explaining the timing and probability of decisions to adopt state-operated lotteries is developed. Employing a Tobit estimator and explicitly considering the effects of state-specific constitutional and political structures, spending and tax policies, and federal revenue importation, evidence is presented showing that legal change is much like economic change: lotteries are more likely to be adopted and to be adopted earlier where the costs are lowest relative to expected benefit. State legislatures appear to be the main beneficiaries of this public choice process. Copyright 1994 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 80 (1994)
Issue (Month): 3-4 (September)
Pages: 245-63

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Handle: RePEc:kap:pubcho:v:80:y:1994:i:3-4:p:245-63

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Julie Smith, 1999. "Australian Gambling Taxation," CEPR Discussion Papers 402, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: A Survey of the Literature," Working Papers 1109, College of the Holy Cross, Department of Economics.
  3. Franklin Mixon & Steven Caudill & Jon Ford & Ter Peng, 1997. "The rise (or fall) of lottery adoption within the logic of collective action: Some empirical evidence," Journal of Economics and Finance, Springer, vol. 21(1), pages 43-49, March.
  4. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
  5. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.
  6. Lutter, Mark, 2011. "The adoption of lotteries in the United States, 1964 - 2007. A model of conditional and time-dynamical diffusion," MPIfG Discussion Paper 11/4, Max Planck Institute for the Study of Societies.

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