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)

Publisher: Routledge, part of the Taylor & Francis Group

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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

DOI: http://dx.doi.org/10.1080/00036840600707001

Affiliations: 1: Department of Economics, National Tsing Hua University, Hsinchu 300, Taiwan

Publication date: 2007-09-01

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