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Lotteries, Litigation, and Education Finance


  • Thomas S. Dee

    () (Department of Economics, Swarthmore College)


In 1993, the state of Georgia instituted a lottery that earmarked new funds for instructional and capital expenditures in public schools. In that same year, Tennessee began court-ordered education finance reforms that were also designed to promote instructional and capital expenditures. Using district-level panel data, this study presents empirical evidence on how these disparate policies influenced the patterns of educational revenues by source and expenditures by function. The results suggest that both state policies increased the state aid to the poorest districts and promoted some spending on the targeted functions. However, the results also suggest that these reforms influenced spending in several other functional areas.

Suggested Citation

  • Thomas S. Dee, 2004. "Lotteries, Litigation, and Education Finance," Southern Economic Journal, Southern Economic Association, vol. 70(3), pages 584-599, January.
  • Handle: RePEc:sej:ancoec:v:70:3:y:2004:p:584-599

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    References listed on IDEAS

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    Cited by:

    1. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    2. Bhatt, Rachana & Rork, Jonathan C. & Walker, Mary Beth, 2011. "Earmarking and the business cycle: The case of state spending on higher education," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 352-359, July.

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