IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v32y2004i1p36-64.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1091142103260674
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1091142103260674?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    2. Figlio, David N & O'Sullivan, Arthur, 2001. "The Local Response to Tax Limitation Measures: Do Local Governments Manipulate Voters to Increase Revenues?," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 233-257, April.
    3. O'Sullivan,Arthur & Sexton,Terri A. & Sheffrin,Steven M., 2007. "Property Taxes and Tax Revolts," Cambridge Books, Cambridge University Press, number 9780521035996, October.
    4. Dye, Richard F. & McGuire, Therese J., 1997. "The effect of property tax limitation measures on local government fiscal behavior," Journal of Public Economics, Elsevier, vol. 66(3), pages 469-487, December.
    5. Chari, V V & Jones, Larry E & Marimon, Ramon, 1997. "The Economics of Split-Ticket Voting in Representative Democracies," American Economic Review, American Economic Association, vol. 87(5), pages 957-976, December.
    6. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    7. Poterba, James M & Rueben, Kim S, 1995. "The Effect of Property-Tax Limits on Wages and Employment in the Local Public Sector," American Economic Review, American Economic Association, vol. 85(2), pages 384-389, May.
    8. 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.
    9. John E. Filer & Donald L. Moak & Barry Uze, 1988. "Why Some States Adopt Lotteries and others Don'T," Public Finance Review, , vol. 16(3), pages 259-283, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gary Painter & KwanOk Lee, 2008. "Elderly Homeownership Transitions," Working Paper 8534, USC Lusk Center for Real Estate.
    2. Hasret Benar & Glenn Jenkins, 2008. "The economics of casino taxation," Applied Economics, Taylor & Francis Journals, vol. 40(1), pages 63-73.
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cletus C. Coughlin & Thomas A. Garrett & Ruben Hernandez-Murillo, 2004. "Spatial probit and the geographic patterns of state lotteries," Working Papers 2003-042, Federal Reserve Bank of St. Louis.
    2. Stephen Fink & Alan Marco & Jonathan Rork, 2004. "Lotto nothing? The budgetary impact of state lotteries," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2357-2367.
    3. Justina A.V. Fischer, 2005. "Do Institutions of Direct Democracy Tame the Leviathan? Swiss Evidence on the Structure of Expenditure for Public Education," University of St. Gallen Department of Economics working paper series 2005 2005-22, Department of Economics, University of St. Gallen.
    4. Garrett, Thomas A. & Coughlin, Cletus C., 2009. "Inter–Temporal Differences in the Income Elasticity of Demand for Lottery Tickets," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(1), pages 77-99, March.
    5. Zhirong Zhao, 2005. "Motivations, Obstacles, and Resources: The Adoption Of The General-Purpose Local Option Sales Tax in Georgia Counties," Public Finance Review, , vol. 33(6), pages 721-746, November.
    6. Linda S. Ghent & Alan P. Grant, 2007. "Are Voting and Buying Behavior Consistent? Evidence from the South Carolina Education Lottery," Public Finance Review, , vol. 35(6), pages 669-688, November.
    7. Anderson, John E. & Giertz, Seth H. & Shimul, Shafiun N., 2022. "Reducing property taxes for agriculture: Diffusion of use-value assessment policy across the United States," Land Use Policy, Elsevier, vol. 120(C).
    8. Ashworth, John & Geys, Benny & Heyndels, Bruno, 2006. "Determinants of tax innovation: The case of environmental taxes in Flemish municipalities," European Journal of Political Economy, Elsevier, vol. 22(1), pages 223-247, March.
    9. Fischer, Justina A.V., 2007. "The Impact of Direct Democracy on Public Education: Evidence for Swiss Students in Reading, Mathematics and Natural Science," SSE/EFI Working Paper Series in Economics and Finance 688, Stockholm School of Economics.
    10. Lutter, Mark, 2011. "The adoption of lotteries in the United States, 1964 - 2007. A model of conditional and time-dynamical diffusion," MPIfG Discussion Paper 11/4, Max Planck Institute for the Study of Societies.
    11. Mark Skidmore & Chad Cotti & James Alm, 2013. "The Political Economy of State Government Subsidy Adoption: The Case of Ethanol," Economics and Politics, Wiley Blackwell, vol. 25(2), pages 162-180, July.
    12. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.
    13. Thomas A. Garrett & Russell S. Sobel, 2004. "State Lottery Revenue: The Importance of Game Characteristics," Public Finance Review, , vol. 32(3), pages 313-330, May.
    14. Douglas C. Bice & William H. Hoyt, 1997. "The Impact of Mandates and Tax Limits on Voluntary Contributions to Local Public Services: An Application to Fire Protection Services," Public Economics 9704002, University Library of Munich, Germany.
    15. Ron Cheung, 2005. "The Effect of Property Tax Limitations on Residential Private Governments," Working Papers wp2005_05_01, Department of Economics, Florida State University.
    16. Yolanda Kodrzycki, 1994. "Privatization of local public services: lessons for New England," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 31-46.
    17. Agrawal, David R. & Trandel, Gregory A., 2019. "Dynamics of policy adoption with state dependence," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    18. Skidmore, Mark & Serkan Tosun, Mehmet, 2008. "Do New Lottery Games Stimulate Retail Activity? Evidence from West Virginia Counties," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(1), pages 1-11.
    19. Cizek, P. & Lei, J. & Ligthart, J.E., 2012. "The Determinants of VAT Introduction : A Spatial Duration Analysis," Other publications TiSEM 835efbcb-4537-4dab-aaa3-c, Tilburg University, School of Economics and Management.
    20. Brown, Ryan P. & Rork, Jonathan C., 2005. "Copycat gaming: A spatial analysis of state lottery structure," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 795-807, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:32:y:2004:i:1:p:36-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.