Lotto nothing? The budgetary impact of state lotteries
Lottery revenues are often touted as an independent revenue source for states. Using 32 years of state financial data, the fallacy of such thinking is demonstrated. Being the first to control for the self-selection of being a lottery state, it is found that overall tax revenues decline with increased lottery sales. Moreover, it is discovered that this decline is driven by a decrease in revenues from general sales and excise taxes, which is only partially offset by increases in income tax receipts. Such findings are attributed to a combination of behavioural and political responses following the lottery's implementation.
Volume (Year): 36 (2004)
Issue (Month): 21 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- Stranahan, Harriet & Borg, Mary O., 1998. "Horizontal Equity Implications of the Lottery Tax," National Tax Journal, National Tax Association, vol. 51(1), pages 71-82, March.
- O. Homer Erekson & Glenn Platt & Christopher Whistler & Andrea Ziegert, 1999. "Factors influencing the adoption of state lotteries," Applied Economics, Taylor & Francis Journals, vol. 31(7), pages 875-884.
- repec:ntj:journl:v:46:y:1993:i:no._4:p:463-76 is not listed on IDEAS
- Melissa Schettini Kearney, 2002.
"State Lotteries and Consumer Behavior,"
NBER Working Papers
9330, National Bureau of Economic Research, Inc.
- Timothy Besley & Anne Case, 1994.
"Unnatural Experiments? Estimating the Incidence of Endogenous Policies,"
NBER Working Papers
4956, National Bureau of Economic Research, Inc.
- Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
- Rork, Jonathan C., 2003. "Coveting Thy Neighbors' Taxation," National Tax Journal, National Tax Association, vol. 56(4), pages 775-787, December.
- Mikesell, John L., 1994. "State Lottery Sales and Economic Activity," National Tax Journal, National Tax Association, vol. 47(1), pages 165-171, March.
- repec:ntj:journl:v:47:y:1994:i:no._1:p:165-71 is not listed on IDEAS
- Mary O. Borg & Paul M. Mason & Stephen L. Shapiro, 1993. "The Cross Effects of Lottery Taxes On Alternative State Tax Revenue," Public Finance Review, SAGE Publishing, vol. 21(2), pages 123-140, April.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2357-2367. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.