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Do Tax and Expenditure Limits Lead to State Lotteries? Evidence from the United States: 1970-1992

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  • Mark M. Glickman
  • Gary D. Painter

Abstract

The past three decades have seen the widespread introduction of both state-level and local-level tax and expenditure limits (TELs). Over the same time period, 37 states have legalized state lotteries to raise revenues. The authors assert that the combination of TELs and lotteries may be an optimal strategy for a median voter attempting to lower his or her tax burden while lowering the cost of monitoring the behavior of government officials. They find consistent evidence that the existence of a limit on the increase of property assessments is a positive predictor of the adoption of a lottery, and they also find some evidence that state limits and limits on property tax revenues also influence states to pass lotteries. Other local TELs have a little estimated impact on the lottery decision.

Suggested Citation

  • Mark M. Glickman & Gary D. Painter, 2004. "Do Tax and Expenditure Limits Lead to State Lotteries? Evidence from the United States: 1970-1992," Public Finance Review, , vol. 32(1), pages 36-64, January.
    • Handle: RePEc:sae:pubfin:v:32:y:2004:i:1:p:36-64
    DOI: 10.1177/1091142103260674
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    References listed on IDEAS

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    1. Alm, James & McKee, Michael J. & Skidmore, Mark, 1993. "Fiscal Pressure, Tax Competition, and the Introduction of State Lotteries," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(4), pages 463-476, December.
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    6. Alm, James & McKee, Michael J. & Skidmore, Mark, 1993. "Fiscal Pressure, Tax Competition, and the Introduction of State Lotteries," National Tax Journal, National Tax Association, vol. 46(4), pages 463-76, December.
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    Cited by:

    1. Humphreys, Brad & Perez, Levi, 2011. "Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries," Working Papers 2011-17, University of Alberta, Department of Economics.
    2. Hasret Benar & Glenn Jenkins, 2008. "The economics of casino taxation," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 63-73.
    3. Gary Painter & KwanOk Lee, 2008. "Elderly Homeownership Transitions," Working Paper 8534, USC Lusk Center for Real Estate.

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