The Economic Consequences of State Lotteries

by Mary Borg, Paul Mason, Stephen L. Shapiro

Overview

Since the modern wave of lotteries began over twenty-five years ago in New Hampshire, state-operated lotteries have become an area of tremendous growth for public sector financing. Gambling taxes of all kinds have been steadily increasing, and thirty-three states are now operating lotteries. In this work, Mary Borg, Paul Mason, and Stephen Shapiro examine the economic impact and consequences of state lotteries, focusing specifically on the efficiency and equity of state government revenue and expenditure policy.

The study begins with an overview of statistical information characterizing the nation's lotteries, and a review of the scholarly literature concerning lotteries and the economic evaluation of the lottery tax. A pair of chapters then explore the equity and efficiency of lotteries. The equity issues are addressed by considering the budgetary impact of the lottery in Illinois and Florida, while the efficiency issues focus on the six education-supporting lottery states, covering such topics as whether taxes are allocated to designated recipients and are efficiently administered. Subsequent chapters detail the effect of lottery taxes on other sources of state tax revenue, and the issue of whether money spent on lottery tickets comes at the expense of necessities or alternative expenditures. A final chapter offers policy prescriptions that could enhance efficiency and equity, as well as a discussion of whether lotteries should be discontinued. This volume will be an important resource for scholars and policy makers in economics, state and local government, and public administration, and a valuable addition to both public and academic libraries.

Product Details

ISBN-13:	9780275935702
Publisher:	Bloomsbury Academic
Publication date:	09/30/1991
Edition description:	New Edition
Pages:	160
Product dimensions:	5.50(w) x 8.50(h) x 0.50(d)
Lexile:	1500L (what's this?)

About the Author

MARY O. BORG is Associate Professor of Economics at the University of North Florida. She has published articles in National Tax Jourbanal, Demography, The Jourbanal of Economic Education, and International Jourbanal of Industrial Organization.

PAUL M. MASON is Associate Professor of Economics at the University of North Florida. He has written articles for The American Economist, the Jourbanal of Business and Economic Perspectives, and The National Tax Jourbanal.

STEPHEN L. SHAPIRO is Associate Professor of Economics at the University of North Florida. He has published articles in Public Finance Quarterly, The Jourbanal of Economic Education, Applied Economics, and American Jourbanal of Economics and Sociology.

Table of Contents

Preface
State Lotteries: Past and Present
Who Bears the Burden of State Lotteries?
Lottery Tax Efficiency
Lottery Taxes and Other Tax Revenue
Where Are Lottery Dollars Coming From? A Comparison of Consumer Expenditures Before and After the Lottery
Conclusions, Policy Recommendations, and Further Research
Appendix
Bibliography
Index