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Mitigating the Combined Distributional Consequences of the Georgia Lottery for Education and the HOPE Scholarship

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  • Noel Campbell
  • R. Zachary Finney

Abstract

Objective. Research demonstrates that nonwhite, lower‐income households bear the Georgia Lottery's tax burden, yet receive fewer benefits. However, local disparities in grading standards may mitigate the observed income redistribution. Our objective is to determine whether certain localities obtain more HOPE scholarships than expected, mitigating the observed redistribution. Method. We use fixed‐effects regression and a sample of Georgia's counties (1996–2002). Results. Our results indicate that some localities obtain more HOPE scholarships than expected, mitigating the observed redistribution. Conclusions. We conclude the income‐redistribution research result does not reveal a complete picture because it overlooks the HOPE scholarship's extraordinary allocation mechanism.

Suggested Citation

  • Noel Campbell & R. Zachary Finney, 2005. "Mitigating the Combined Distributional Consequences of the Georgia Lottery for Education and the HOPE Scholarship," Social Science Quarterly, Southwestern Social Science Association, vol. 86(3), pages 746-758, September.
    • Handle: RePEc:bla:socsci:v:86:y:2005:i:3:p:746-758
    DOI: 10.1111/j.0038-4941.2005.00327.x
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    References listed on IDEAS

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    1. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(3), pages 629-662, September.
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    Cited by:

    1. 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.
    2. Noel D. Campbell & Frank Smith, 2009. "Merit-Based Scholarship ``Over-Awards'' and Home Prices," Public Finance Review, , vol. 37(2), pages 198-216, March.

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