IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v6y1978i4p415-426.html
   My bibliography  Save this article

The Incidence of State Lottery Taxes

Author

Listed:
  • Jerome F. Heavey

    (Lafayette College)

Abstract

The price of a lottery ticket consists of two components, the production cost of the ticket and an excise tax. This tax is an approximately constant proportion of ticket price and is fully shifted to the consumer. Hence the ratio of tax to income is a multiple of the expenditures-income ratio. Data from the Pennsylvania state lottery were used to estimate the relationships between lottery expenditures and income, age, race, education, and city residence. It is concluded that the excise tax on lotteries is moderately regressive, representing much less than one percent of income at all income levels.

Suggested Citation

  • Jerome F. Heavey, 1978. "The Incidence of State Lottery Taxes," Public Finance Review, , vol. 6(4), pages 415-426, October.
    • Handle: RePEc:sae:pubfin:v:6:y:1978:i:4:p:415-426
    DOI: 10.1177/109114217800600402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217800600402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217800600402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Handa, J C, 1971. "A Theory of Risk Preference in Gambling," Journal of Political Economy, University of Chicago Press, vol. 79(5), pages 1073-1083, Sept.-Oct.
    2. Lawrence J. Kaplan & James M. Maher, 1970. "The Economics of the Numbers Game," American Journal of Economics and Sociology, Wiley Blackwell, vol. 29(4), pages 391-408, October.
    3. Young Chin Kim, 1973. "Choice in the Lottery-Insurance Situation Augmented-Income Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(1), pages 148-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stranahan, Harriet & Borg, Mary O., 1998. "Horizontal Equity Implications of the Lottery Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(1), pages 71-82, March.
    2. Stranahan, Harriet & Borg, Mary O., 1998. "Horizontal Equity Implications of the Lottery Tax," National Tax Journal, National Tax Association, vol. 51(n. 1), pages 71-82, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John O.S. Kennedy, 1980. "On The Derivation Of Indifference Curves For Estimating Consumer Surplus," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 291-295, December.
    2. Roger Hartley & Lisa Farrell, 2002. "Can Expected Utility Theory Explain Gambling?," American Economic Review, American Economic Association, vol. 92(3), pages 613-624, June.
    3. Machina, Mark J, 1982. ""Expected Utility" Analysis without the Independence Axiom," Econometrica, Econometric Society, vol. 50(2), pages 277-323, March.
    4. Gong, Xiaodong & Zhu, Rong, 2019. "Cognitive abilities, non-cognitive skills, and gambling behaviors," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 51-69.
    5. Coelho, Philip R. P. & McClure, James E., 1998. "Social context and the utility of wealth: Addressing the Markowitz challenge," Journal of Economic Behavior & Organization, Elsevier, vol. 37(3), pages 305-314, November.
    6. Conlisk, John, 1993. "The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-275, June.
    7. Nyman, John A. & Welte, John W. & Dowd, Bryan E., 2008. "Something for nothing: A model of gambling behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2492-2504, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:6:y:1978:i:4:p:415-426. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.