Education's Gambling Problem: Earmarked Lottery Revenues and Charitable Donations to Education

16 Pages Posted: 7 Feb 2015

See all articles by Daniel Jones

Daniel Jones

University of Pittsburgh - Graduate School of Public & International Affairs

Date Written: April 2015

Abstract

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 Classification: D64, H3, H75

Suggested Citation

Jones, Daniel, Education's Gambling Problem: Earmarked Lottery Revenues and Charitable Donations to Education (April 2015). Economic Inquiry, Vol. 53, Issue 2, pp. 906-921, 2015, Available at SSRN: https://ssrn.com/abstract=2561689 or http://dx.doi.org/10.1111/ecin.12194

Daniel Jones (Contact Author)

University of Pittsburgh - Graduate School of Public & International Affairs ( email )

Pittsburgh, PA 15260-0001
United States

HOME PAGE: http://danielbjones.weebly.com

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