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Lottery expenses and charitable contributions - Taiwan's experience

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  • Eric Lin
  • Shih-Ying Wu

Abstract

Individuals' contributions are affected by their lottery outlays if they consider their spending of lottery funds on charities to be a substitute for or a complement to their direct charitable contributions. This study investigates the effect of lottery outlays on charitable contributions based on the experience of lottery introduction in Taiwan. The estimates reveal that lottery outlays exert a positive effect on charitable contributions while the quantitative impact is significant. This study thus provides evidence ameliorating the pessimistic prospect that people may reduce their direct charitable contributions when they spend more on lotteries. Possible explanations for the positive effect are also discussed.

Suggested Citation

  • Eric Lin & Shih-Ying Wu, 2007. "Lottery expenses and charitable contributions - Taiwan's experience," Applied Economics, Taylor & Francis Journals, vol. 39(17), pages 2241-2251.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2241-2251
    DOI: 10.1080/00036840600707001
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    References listed on IDEAS

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    1. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, December.
    2. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1.
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    Cited by:

    1. Andreoni, James & Payne, Abigail & Smith, Sarah, 2014. "Do grants to charities crowd out other income? Evidence from the UK," Journal of Public Economics, Elsevier, vol. 114(C), pages 75-86.
    2. 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.
    3. Shih-Ying Wu, 2014. "Does charitable gambling crowd out charitable donations? Using matching to analyze a policy reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(6), pages 975-996, December.

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