![Copycat gaming: A spatial analysis of state lottery structure [An article from: Regional Science and Urban Economics]](https://www.ebooknetworking.net/books/B00/0RR/bigB000RR5466.jpg)
Copycat gaming: A spatial analysis of state lottery structure [An article from: Regional Science and Urban Economics]
Book Details
Author(s)R.P. Brown, J.C. Rork
PublisherElsevier
ISBN / ASINB000RR5466
ISBN-13978B000RR5465
MarketplaceFrance 🇫🇷
Description
This digital document is a journal article from Regional Science and Urban Economics, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
In models of tax competition, tax instruments are explicit; all parties are aware of the tax and respond to incentives provided therein. In the case of state lotteries, the tax is the amount of sales collected but not redistributed as prizes. Using data from 1967 to 2000, we show that although such a tax is implicit, states still engage in tax competition; if neighboring states raise their prize payout by 10% (thereby lowering their lottery tax), the home state will respond with up to a 5% increase in their prize payout.
Description:
In models of tax competition, tax instruments are explicit; all parties are aware of the tax and respond to incentives provided therein. In the case of state lotteries, the tax is the amount of sales collected but not redistributed as prizes. Using data from 1967 to 2000, we show that although such a tax is implicit, states still engage in tax competition; if neighboring states raise their prize payout by 10% (thereby lowering their lottery tax), the home state will respond with up to a 5% increase in their prize payout.
