Advanced Search
MyIDEAS: Login to save this article or follow this journal

Horizontal Equity Implications of the Lottery Tax

Contents:

Author Info

  • Stranahan, Harriet
  • Borg, Mary O.
Registered author(s):

    Abstract

    Based on Musgrave’s traditional definition of horizontal equity, this paper estimates whether the lottery tax results in a differential tax burden by race, educational attainment, or age within households that have equal economic positions. A second question that is addressed is whether lottery advertising intensifies any horizontal inequities that exist. Indeed, this study finds that, among individuals with otherwise identical characteristics, African Americans bear a significantly higher lottery tax burden. Other minority groups and individuals with the lowest educational attainment also bear a larger lottery tax burden, although the difference is not significant at the ten percent level. In addition, the results suggest that lottery advertising has its greatest impact on African Americans, thus intensifying the horizontal inequity of the lottery tax and resulting in a greater tax burden for African Americans as compared to identical Caucasians.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ntanet.org/NTJ/51/1/ntj-v51n01p71-82-horizontal-equity-implications-lottery.pdf
    Download Restriction: no

    File URL: http://www.ntanet.org/NTJ/51/1/ntj-v51n01p71-82-horizontal-equity-implications-lottery.html
    Download Restriction: no

    Bibliographic Info

    Article provided by National Tax Association in its journal National Tax Journal.

    Volume (Year): 51 (1998)
    Issue (Month): n. 1 (March)
    Pages: 71-82

    as in new window
    Handle: RePEc:ntj:journl:v:51:y:1998:i:n._1:p:71-82

    Contact details of provider:
    Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109
    Phone: (202)737-3325
    Fax: (202) 737-7308
    Email:
    Web page: http://www.ntanet.org/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Kondor, Yaakov, 1976. "Optimal Deviations from Horizontal Equity: The Case of Family Size: A Reply," Public Finance = Finances publiques, , vol. 31(3), pages 440-42.
    2. Shoup, Carl S, 1988. "Distribution of Benefits from Government Services: Horizontal Equity," Public Finance = Finances publiques, , vol. 43(1), pages 1-18.
    3. Kondor, Yaakov, 1975. "Optimal Deviations from Horizontal Equity: The Case of Family Size," Public Finance = Finances publiques, , vol. 30(2), pages 216-21.
    4. Jerome F. Heavey, 1978. "The Incidence of State Lottery Taxes," Public Finance Review, , vol. 6(4), pages 415-426, October.
    5. Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
    6. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Cho-Min Lin & Kung-Cheng Lin, 2007. "The demand for lottery expenditure in Taiwan: a quantile regression approach," Economics Bulletin, AccessEcon, vol. 4(42), pages 1-11.
    2. Brown, Ryan P. & Rork, Jonathan C., 2005. "Copycat gaming: A spatial analysis of state lottery structure," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 795-807, November.
    3. Rubenstein, Ross & Scafidi, Benjamin, 2002. "Who Pays and Who Benefits? Examining the Distributional Consequences of the Georgia Lottery for Education," National Tax Journal, National Tax Association, vol. 55(N. 2), pages 223-238, June.
    4. Humphreys, Brad & Perez, Levi, 2011. "Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries," Working Papers 2011-17, University of Alberta, Department of Economics.
    5. repec:ebl:ecbull:v:4:y:2007:i:42:p:1-11 is not listed on IDEAS
    6. Price, Donald I. & Novak, E. Shawn, 1999. "The Tax Incidence of Three Texas Lottery Games: Regressivity, Race, and Education," National Tax Journal, National Tax Association, vol. 52(n. 4), pages 741-52, December.
    7. A. Bussu & C. Detotto, 2013. "The effect of socio-economic and emotional factors on gambling behaviour," Working Paper CRENoS 201305, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:51:y:1998:i:n._1:p:71-82. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.