Answers are grounded in this paper and cite their sources.
We study the implicit tax incidence of raising state revenue through a monopoly state-run lottery using a new dataset on individual Minnesota lottery game sales by zip code. We use the bootstrap to compute SEs and construct confidence intervals for Suits Indices of seven lottery products. We conclude that the implicit tax on each product is regressive, and find statistically significant differences in regressivity between some products. Minnesota’s newly introduced G3 instant scratch product, printed at time and place of purchase, is also the most regressive lottery game.
No takes yet. Share an insight, caveat, or question.
Combs et al. (2007) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: