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Factors influencing the adoption of state lotteries

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This paper explores the factors influencing the adoption of state lotteries in the United States. The conceptual framework utilizes a common utility framework in which a representative legislator maximizes utility derived from the current and expected fiscal position of a state, subject to a political constraint. The empirical results support the theoretical hypotheses, including the finding that changes in the fiscal health of the state, the predicted profit potential of a lottery, and the political climate of the state all affect the likelihood that a lottery is adopted. By introducing a sound conceptual framework, using better data than used in previous studies, utilizing an appropriate estimation technique, and obtaining strong results, this study advances our knowledge of why states adopt lotteries.
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Document Type: Research Article

Publication date: 1999-07-01

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