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Do New Lottery Games Stimulate Retail Activity? Evidence from West Virginia Counties

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Author Info
Mark Skidmore () (Department of Economics, University of Wisconsin - Whitewater)
Mehmet Serkan Tosun () (Bureau of Business and Economic Research, College of Business and Economics, West Virginia University)

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Abstract

In this paper we examine the impact of the lottery sales and the introduction of new lottery games on the retail activity using panel data on lottery sales, the adoption of new lottery games in West Virginia and in neighboring states, and retail income (a proxy for retail sales) for all 55 counties in West Virginia over the 1987-2001 period. Importantly, we are able to utilize changes in neighboring state lottery status to examine the potentially endogenous relationship between lottery sales and retail activity. Our findings generally show that lottery sales are positively associated with retail income, but perhaps surprisingly this positive effect is generated from interior counties and not border counties. We also find that the introduction of video lottery in several West Virginia counties has resulted in a significant increase in retail income.

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Publisher Info
Paper provided by UW-Whitewater, Department of Economics in its series Working Papers with number 05-06.

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Length: 23 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:uww:wpaper:05-06

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Postal: Whitewater, WI 53190-1750
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Related research
Keywords: Lottery; Regional Development;

Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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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.:
  1. Melissa Schettini Kearney, 2002. "State Lotteries and Consumer Behavior," NBER Working Papers 9330, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Garrett, Thomas A. & Marsh, Thomas L., 2002. "The revenue impacts of cross-border lottery shopping in the presence of spatial autocorrelation," Regional Science and Urban Economics, Elsevier, vol. 32(4), pages 501-519, July. [Downloadable!] (restricted)
  3. Clotfelter, Charles T & Cook, Philip J, 1990. "On the Economics of State Lotteries," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 105-19, Fall. [Downloadable!] (restricted)
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