Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries
Government sponsored lotteries operate around the world. Their popularity has grown substantially over time. Legal lottery gambling generates significant public revenue, much of it from the lower part of the income distribution. Lottery is almost always an unfair bet, so explaining the purchase of lottery tickets by risk-averse consumers has long challenged economic theory. Lotteries can be analyzed from the perspective of public finance, as source of public revenue, or consumer theory, as a consumer commodity. We survey the state of economic research on lotteries from both perspectives, focusing on the key empirical findings.
|Date of creation:||01 Oct 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (780) 492-3406
Fax: (780) 492-3300
Web page: http://www.economics.ualberta.ca/
More information through EDIRC
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.:
- Victor Matheson, 2001. "When Are State Lotteries a Good Bet (Revisited)?," Eastern Economic Journal, Eastern Economic Association, vol. 27(1), pages 55-70, Winter.
- Jen-Hung Wang & Larry Tzeng & Junji Tien, 2006. "Willingness to pay and the demand for lotto," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1207-1216.
- Tosun, Mehmet Serkan & Skidmore, Mark, 2004. "Interstate Competition and State Lottery Revenues," National Tax Journal, National Tax Association, vol. 57(2), pages 163-78, June.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Donald I. Price & E. Shawn Novak, 2000. "The Income Redistribution Effects of Texas State Lottery Games," Public Finance Review, , vol. 28(1), pages 82-92, January.
- Papachristou, George & Karamanis, Dimitri, 1998. "Investigating efficiency in betting markets: Evidence from the Greek 6/49 Lotto," Journal of Banking & Finance, Elsevier, vol. 22(12), pages 1597-1615, December.
- Philip J. Cook & Charles T. Clotfelter, 1991.
"The Peculiar Scale Economies of Lotto,"
NBER Working Papers
3766, National Bureau of Economic Research, Inc.
- Franklin Mixon & Steven Caudill & Jon Ford & Ter Peng, 1997. "The rise (or fall) of lottery adoption within the logic of collective action: Some empirical evidence," Journal of Economics and Finance, Springer, vol. 21(1), pages 43-49, March.
- Garrett, Thomas A. & Marsh, Thomas L., 2002. "The revenue impacts of cross-border lottery shopping in the presence of spatial autocorrelation," Regional Science and Urban Economics, Elsevier, vol. 32(4), pages 501-519, July.
- Ursula Hauser-Rethaller & Ulrich König, 2002. "Parimutuel Lotteries: Gamblers' Behavior and the Demand for Tickets," German Economic Review, Verein für Socialpolitik, vol. 3(2), pages 223-245, 05.
- Brad R. Humphreys & Victor Matheson, 2010. "Booms, Busts, and Gambling: Can Gaming Revenues Reduce Budget Volatility?," Working Papers 1003, College of the Holy Cross, Department of Economics.
- Quiggin, John, 1991. "On the Optimal Design of Lotteries," Economica, London School of Economics and Political Science, vol. 58(229), pages 1-16, February.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
- Garrett, Thomas A, 1999. "A Test of Shirking under Legislative and Citizen Vote: The Case of State Lottery Adoption," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 189-208, April.
- Farrell, Lisa & Morgenroth, Edgar & Walker, Ian, 1999. " A Time Series Analysis of U.K. Lottery Sales: Long and Short Run Price Elasticities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 513-26, November.
- Lisa Farrell & David Forrest, 2008. "Measuring displacement effects across gaming products: a study of Australian gambling markets," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 53-62.
- Geronikolaou, George & Papachristou, George, 2007.
"On the demand for lotteries in Greece,"
36701, University Library of Munich, Germany.
- Gary S. Becker & Kevin M. Murphy, 1986.
"A Theory of Rational Addiction,"
University of Chicago - George G. Stigler Center for Study of Economy and State
41, Chicago - Center for Study of Economy and State.
- Farrell, Lisa & Walker, Ian, 1999. "The welfare effects of lotto: evidence from the UK," Journal of Public Economics, Elsevier, vol. 72(1), pages 99-120, April.
- Borg, Mary O. & Mason, Paul M., 1988. "The Budgetary Incidence of a Lottery to Support Education," National Tax Journal, National Tax Association, vol. 41(1), pages 75-85, March.
- Patrick Feehan & David Forrest, 2007. "Distribution of UK National Lottery grants across local authority areas," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 361-365.
- Cletus C. Coughlin & Thomas A. Garrett & Rubén Hernández-Murillo, 2006. "The geography, economics, and politics of lottery adoption," Review, Federal Reserve Bank of St. Louis, issue May, pages 165-180.
- Goodman, Joseph K. & Irwin, Julie R., 2006. "Special random numbers: Beyond the illusion of control," Organizational Behavior and Human Decision Processes, Elsevier, vol. 99(2), pages 161-174, March.
- Charles T. Clotfelter & Philip J. Cook, 1987. "Implicit Taxation in Lottery Finance," NBER Working Papers 2246, National Bureau of Economic Research, Inc.
- Thomas Garrett, 2001. "An International Comparison and Analysis of Lotteries and the Distribution of Lottery Expenditures," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(2), pages 213-227.
- Mark Edward Stover, 1990. "Contiguous state lotteries: Substitutes or complements?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(4), pages 565-568.
- Victor Matheson & Kent Grote, 2004.
"Dueling Jackpots: Are Competing Lotto Games Complements or Substitutes?,"
0406, College of the Holy Cross, Department of Economics.
- Kent Grote & Victor Matheson, 2006. "Dueling Jackpots: Are Competing Lotto Games Complements or Substitutes?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 34(1), pages 85-100, March.
- George Papachristou, 2004. "The British gambler's fallacy," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2073-2077.
- Scott, Frank A, Jr & Gulley, O David, 1995. "Testing for Efficiency in Lotto Markets," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 175-88, April.
- 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.
- Marc Le Menestrel, 2001.
"A process approach to the utility for gambling,"
Economics Working Papers
570, Department of Economics and Business, Universitat Pompeu Fabra.
- Alm, James & McKee, Michael J. & Skidmore, Mark, 1993. "Fiscal Pressure, Tax Competition, and the Introduction of State Lotteries," National Tax Journal, National Tax Association, vol. 46(4), pages 463-76, December.
- Stephen Fink & Alan Marco & Jonathan Rork, 2004. "Lotto nothing? The budgetary impact of state lotteries," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2357-2367.
- Kent Grote & Victor Matheson, 2007.
"Examining the 'Halo Effect' in lotto games,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 14(4), pages 307-310.
- Chin-Tsai Lin & Chien-Hua Lai, 2006. "Substitute effects between Lotto and Big Lotto in Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 13(10), pages 655-658.
- Jonathan Guryan & Melissa S. Kearney, 2008. "Gambling at Lucky Stores: Empirical Evidence from State Lottery Sales," American Economic Review, American Economic Association, vol. 98(1), pages 458-73, March.
- Patrick Roger & Marie-Helene Broihanne, 2007. "Efficiency of Betting Markets and Rationality of Players: Evidence from the French 6/49 Lotto," Journal of Applied Statistics, Taylor & Francis Journals, vol. 34(6), pages 645-662.
- repec:cup:cbooks:9780521816038 is not listed on IDEAS
- David Forrest & Ian McHale, 2007. "The Relationship Between a National and a Multistate Lotto Game," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 1(3), pages 207-216, November.
- Scoggins, John F., 1995. "The Lotto and Expected Net Revenue," National Tax Journal, National Tax Association, vol. 48(1), pages 61-70, March.
- Matheson, Victor A. & Grote, Kent R., 2004. "Lotto fever: do lottery players act rationally around large jackpots?," Economics Letters, Elsevier, vol. 83(2), pages 233-237, May.
- David Forrest & O. David Gulley & Robert Simmons, 2004. "Substitution between games in the UK national lottery," Applied Economics, Taylor & Francis Journals, vol. 36(7), pages 645-651.
- David Forrest & O. David Gulley & Robert Simmons, 2000. "Testing for rational expectations in the UK National Lottery," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 315-326.
- Walker, Ian & Young, Juliet, 2001. "An Economist's Guide to Lottery Design," Economic Journal, Royal Economic Society, vol. 111(475), pages F700-722, November.
- Donald Siegel & Gary Anders, 2001. "The Impact of Indian Casinos on State Lotteries: A Case Study of Arizona," Public Finance Review, , vol. 29(2), pages 139-147, March.
- Andrew C. Worthington, 2001. "Implicit Finance in Gambling Expenditures: Australian Evidence on Socioeconomic and Demographic Tax Incidence," Public Finance Review, , vol. 29(4), pages 326-342, July.
- Kearney, Melissa Schettini, 2005.
"State lotteries and consumer behavior,"
Journal of Public Economics,
Elsevier, vol. 89(11-12), pages 2269-2299, December.
- 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.
- Humphreys, Brad & Lee, Yang Seung & Soebbing, Brian, 2009. "Consumer Behaviour in Lotto Markets: The Double Hurdle Approach and Zeros in Gambling Survey Data," Working Papers 2009-27, University of Alberta, Department of Economics.
- Garrett, Thomas A. & Sobel, Russell S., 1999. "Gamblers favor skewness, not risk: Further evidence from United States' lottery games," Economics Letters, Elsevier, vol. 63(1), pages 85-90, April.
- Beenstock, Michael & Haitovsky, Yoel, 2001. "Lottomania and other anomalies in the market for lotto," Journal of Economic Psychology, Elsevier, vol. 22(6), pages 721-744, December.
- Conlisk, John, 1993. " The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-75, June.
- Oster, Emily, 2004. "Are All Lotteries Regressive? Evidence from the Powerball," National Tax Journal, National Tax Association, vol. 57(2), pages 179-87, June.
- Ian Walker, 1998. "The economic analysis of lotteries," Economic Policy, CEPR;CES;MSH, vol. 13(27), pages 357-402, October.
- Mark M. Glickman & Gary D. Painter, 2004. "Do Tax and Expenditure Limits Lead to State Lotteries? Evidence from the United States: 1970-1992," Public Finance Review, , vol. 32(1), pages 36-64, January.
- Gulley, O. David & Scott, Frank A. Jr., 1989. "Lottery Effects on Pari-Mutuel Tax Revenues," National Tax Journal, National Tax Association, vol. 42(1), pages 89-93, March.
- Scott, Frank & Garen, John, 1994. "Probability of purchase, amount of purchase, and the demographic incidence of the lottery tax," Journal of Public Economics, Elsevier, vol. 54(1), pages 121-143, May.
- Farrell, Lisa, et al, 2000. "The Demand for Lotto: The Role of Conscious Selection," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(2), pages 228-41, April.
When requesting a correction, please mention this item's handle: RePEc:ris:albaec:2011_017. 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: (Brenda Carrier)
If references are entirely missing, you can add them using this form.