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Education’s gambling problem: The impact of earmarking lottery revenues for education on charitable giving and government spending

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  • Daniel Jones

Abstract

I examine the impact that lotteries introduced to support education have on overall funding for education. Using donor-level survey data and nonprofit tax returns, I find that donations to education-related organizations fall with the introduction of a lottery. This result seems to be driven by donors’ response to the new (highly publicized) government revenue source (rather than a decrease in nonprofit fundraising efforts), highlighting the role of salience of government activity in charitable crowd-out. Additionally, I find no evidence that states significantly increase their education expenditures. Thus, education lotteries may decrease overall funding for education.

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  • Daniel Jones, 2013. "Education’s gambling problem: The impact of earmarking lottery revenues for education on charitable giving and government spending," The Centre for Market and Public Organisation 13/307, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:13/307
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    Cited by:

    1. Flores-Macías, Gustavo A., 2018. "Building support for taxation in developing countries: Experimental evidence from Mexico," World Development, Elsevier, vol. 105(C), pages 13-24.

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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