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Lottery expenses and charitable contributions - Taiwan's experience

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Author Info

  • Eric Lin
  • Shih-Ying Wu

Abstract

Individuals' contributions are affected by their lottery outlays if they consider their spending of lottery funds on charities to be a substitute for or a complement to their direct charitable contributions. This study investigates the effect of lottery outlays on charitable contributions based on the experience of lottery introduction in Taiwan. The estimates reveal that lottery outlays exert a positive effect on charitable contributions while the quantitative impact is significant. This study thus provides evidence ameliorating the pessimistic prospect that people may reduce their direct charitable contributions when they spend more on lotteries. Possible explanations for the positive effect are also discussed.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707001
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 17 ()
Pages: 2241-2251

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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2241-2251

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Cited by:
  1. Andreoni, James & Payne, Abigail & Smith, Sarah, 2014. "Do grants to charities crowd out other income? Evidence from the UK," Journal of Public Economics, Elsevier, vol. 114(C), pages 75-86.
  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.

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