What jackpot? The optimal lottery tax

Michael Beenstock; Ephraim Goldin; Yoel Haitovsky

doi:10.1016/S0176-2680(00)00013-6

What jackpot? The optimal lottery tax

Michael Beenstock^*, Ephraim Goldin, Yoel Haitovsky

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

9 Scopus citations

Abstract

The payout rate on lotto is normally fixed. We show that such a policy is generally suboptimal from the lotto authorities' point of view. The payout rate should be allowed to vary according to the number of rollovers that have occurred. To illustrate our argument, we simulate and optimize an econometric model of the lotto market in Israel. We also consider whether it is profitable to increase the frequency of lotto from once to twice a week.

Original language	English
Pages (from-to)	655-671
Number of pages	17
Journal	European Journal of Political Economy
Volume	16
Issue number	4
DOIs	https://doi.org/10.1016/S0176-2680(00)00013-6
State	Published - Nov 2000

Keywords

Jackpot
Lottery
Tax

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10.1016/S0176-2680(00)00013-6

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What jackpot? The optimal lottery tax

Abstract

Keywords

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