Garrett, Thomas A.; Coughlin, Cletus C. - Federal Reserve Bank of St. Louis - 2007
We estimate annual income elasticities of demand for lottery tickets using roughly twenty years of county-level data … for three states. We find that the income elasticity of demand (and thus the tax burden) for lottery tickets has changed … income. Trends in the income elasticity of demand for instant and online lottery games appear to be different. Our results …