The Impact of Earmarked Lottery Revenue on K–12 Educational Expenditures
AbstractOf thirty-eight states with lotteries, sixteen earmark lottery profits for primary and secondary education. In this article, we use a panel data set of states with lotteries to examine the impact of earmarking lottery revenues on state educational spending. We can reject the hypothesis that spending increases dollar for dollar with earmarked profits, but there is a high likelihood that earmarking increases school spending more than non-earmarking. We find that 50–70 cents out of an earmarked dollar finds its way to local school districts. In contrast, each dollar of lottery profits increases state revenues to schools by about 30 cents in states that deposit profits into the general fund. Of the lottery dollars that reach local school districts, we find that at least 80 percent of it is spent on schools. © 2007 American Education Finance Association
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal Education Finance and Policy.
Volume (Year): 2 (2007)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Find related papers by JEL classification:
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jeremy Jackson, 2013. "Tax earmarking, party politics and gubernatorial veto: theory and evidence from US states," Public Choice, Springer, vol. 155(1), pages 1-18, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.