EDUCATION'S GAMBLING PROBLEM: EARMARKED LOTTERY REVENUES AND CHARITABLE DONATIONS TO EDUCATION

Daniel Jones

Economic Inquiry, 2015, vol. 53, issue 2, 906-921

Abstract: type="main" xml:id="ecin12194-abs-0001"> 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)

Date: 2015
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