“…Many of these studies are compared in the review byCoughlin et al (2006). More comprehensive studies of lotteries includeClotfelter and Cook (1991),Borg et al (1991), andvon Herrmann (2002).10 We do not give a detailed discussion of the differences between the variables used in the two studies, since our interest is more in their empirical frameworks.…”
“…Many of these studies are compared in the review byCoughlin et al (2006). More comprehensive studies of lotteries includeClotfelter and Cook (1991),Borg et al (1991), andvon Herrmann (2002).10 We do not give a detailed discussion of the differences between the variables used in the two studies, since our interest is more in their empirical frameworks.…”
“…However, factors that are unrelated to education financing (e.g., withinstate religiosity, the adoption of a lottery in a neighboring state) have been shown to be more important predictors of lottery adoption than fiscal crises (Coughlin, Garrett, and Hernández-Murillo 2006), particularly in lotteries introduced after the 1970s (Alm, McKee, and Skidmore 1993). "Edulot ist " is an indicator variable equal to one if observation i is in a state (s) that, at that point in time (t), sponsors an education-funding lottery.…”
Section: General Empirical Approachmentioning
confidence: 99%
“…This would violate the assumption of parallel pre-treatment trends across treatment and control states. However, factors that are unrelated to education financing (e.g., withinstate religiosity, the adoption of a lottery in a neighboring state) have been shown to be more important predictors of lottery adoption than fiscal crises (Coughlin, Garrett, and Hernández-Murillo 2006), particularly in lotteries introduced after the 1970s (Alm, McKee, and Skidmore 1993). In online appendix Table A1, I report results suggesting that donations are not different in treatment states just prior to the 9.…”
I examine the impact that lotteries introduced to support education have on voluntary contributions to education. State lotteries, and the causes they are introduced to support, are highly publicized. This provides the opportunity to assess whether donors are crowded‐out by government spending of which they are almost certainly aware. Using donor‐level survey data and nonprofits' tax returns, I find that donations to education‐related organizations fall with the introduction of a lottery. This result is driven by donors' response to the new (highly publicized) government revenue source (rather than a decrease in nonprofit fundraising efforts). (JEL D64, H3, H75)
“…Coughlin et al . () recently surveyed the adoption of lotteries by US states. In the US, lotteries were common mechanisms for raising money to fund public activities from the colonial era until the mid 1800s, but corruption and public distrust lead to a national ban on lotteries in the 19th century.…”
Section: Lottery Adoption Revenue Generation and Incidencementioning
confidence: 99%
“…Since lotteries represent an important and growing source of revenues, the decision to create a lottery, the size and uses of government lottery revenues, and the incidence of these revenues represent important elements of the literature on the economics of lotteries. Coughlin et al (2006) recently surveyed the adoption of lotteries by US states. In the US, lotteries were common mechanisms for raising money to fund public activities from the colonial era until the mid 1800s, but corruption and public distrust lead to a national ban on lotteries in the 19th century.…”
Section: Lottery Adoption Revenue Generation and Incidencementioning
Lotteries operate today in many countries around the world. This type of gambling is usually run by governments and is sometimes described as regressive. Lottery is an unfair bet, so explaining the purchase of lottery tickets by risk‐averse consumers has been a challenge for economic theory. Lotteries can be analysed from either of two economic perspectives: as a source of public revenue or as a consumer commodity. In this paper the state of economic research on lotteries is reviewed, focusing on its main empirical findings.
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