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

Daniel Jones ()

The Centre for Market and Public Organisation from The Centre for Market and Public Organisation, University of Bristol, UK

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.

JEL-codes: D64 H3 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2013-06
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Persistent link: https://EconPapers.repec.org/RePEc:bri:cmpowp:13/307

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