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The Tax Incidence of the Colorado State Lottery Instant Game

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  • Ann Hansen

    (Westminster College of Salt Lake City)

Abstract

This article assesses the county-by-county incidence of the Colorado state lottery tax for instant games during 1989. Tax regressivity is found. The share of income spent on instant game tickets is negatively related to per capita income. Regressivity is confirmed by Suits's index of tax concentration. An even stronger case of regres sivity suggests that instant game tickets are an inferiorgood. Per capita instant game sales are negatively and significantly related to income in regressions, including the percentage of county population that is Hispanic, the percentage of Blacks, population density, the number of instant game outlets per capita, and variables related to the age distribution and educational attainment of county population.

Suggested Citation

  • Ann Hansen, 1995. "The Tax Incidence of the Colorado State Lottery Instant Game," Public Finance Review, , vol. 23(3), pages 385-398, July.
    • Handle: RePEc:sae:pubfin:v:23:y:1995:i:3:p:385-398
    DOI: 10.1177/109114219502300305
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    References listed on IDEAS

    as
    1. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(1), pages 75-85, March.
    2. Vaillancourt, F. & Grignon, J., 1988. "Canadian Lotteries As Taxes: Revenues and Incidence," Cahiers de recherche 8804, Universite de Montreal, Departement de sciences economiques.
    3. Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association, vol. 41(1), pages 75-85, March.
    4. Charles T. Clotfelter & Philip J. Cook, 1987. "Implicit Taxation in Lottery Finance," NBER Working Papers 2246, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Garrett, Thomas A. & Coughlin, Cletus C., 2009. "Inter–Temporal Differences in the Income Elasticity of Demand for Lottery Tickets," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(1), pages 77-99, March.
    2. Giuliano Resce & Raffaele Lagravinese & Elisa Benedetti & Sabrina Molinaro, 2019. "Income-related inequality in gambling: evidence from Italy," Review of Economics of the Household, Springer, vol. 17(4), pages 1107-1131, December.
    3. Melissa S. Kearney, 2005. "The Economic Winners and Losers of Legalized Gambling," NBER Working Papers 11234, National Bureau of Economic Research, Inc.
    4. Kearney, Melissa Schettini, 2005. "State lotteries and consumer behavior," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2269-2299, December.
    5. Michael Coon & Gwyneth Whieldon, 2016. "Elasticity of Demand and Optimal Prize Distribution for Instant Lottery Games," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(4), pages 457-469, December.
    6. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.
    7. Kathryn L. Combs & John A. Spry, 2012. "Who plays the numbers games in the middle of the day?," Applied Economics, Taylor & Francis Journals, vol. 44(7), pages 889-897, March.
    8. Cletus C. Coughlin & Thomas A. Garrett, 2008. "Income and lottery sales: transfers trump income from work and wealth," Working Papers 2008-004, Federal Reserve Bank of St. Louis.
    9. Kathryn L. Combs & John A. Spry, 2019. "The Effects Of Lotto Game Changes And Large Jackpots On Income Elasticities And Sales," Contemporary Economic Policy, Western Economic Association International, vol. 37(2), pages 261-273, April.
    10. Luca Gandullia & Lucia Leporatti, 2019. "Distributional effects of gambling taxes: empirical evidence from Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 565-590, December.
    11. Giebeler, Constanze & Rebeggiani, Luca, 2019. "Who Loves to Gamble? Socio-Economic Factors Determining Gambling Behaviour in Germany," MPRA Paper 94735, University Library of Munich, Germany.

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