Lottery expenses and charitable contributions - Taiwan's experience
Authors: Lin, Eric S.; Wu, Shih-Ying
Source: Applied Economics, Volume 39, Number 17, September 2007 , pp. 2241-2251(11)
Abstract:Individuals' contributions are affected by their lottery outlays if they consider their spending of lottery funds on charities to be a substitute for or a complement to their direct charitable contributions. This study investigates the effect of lottery outlays on charitable contributions based on the experience of lottery introduction in Taiwan. The estimates reveal that lottery outlays exert a positive effect on charitable contributions while the quantitative impact is significant. This study thus provides evidence ameliorating the pessimistic prospect that people may reduce their direct charitable contributions when they spend more on lotteries. Possible explanations for the positive effect are also discussed.
Document Type: Research article
Publication date: 2007-09-01