The tax incidence of three Texas lottery games: Regressivity, race, and education

Zip code aggregated data were used to measure the regressivity of three Tex as lottery games using both Suits Indices of Progressivity and regression a nalysis. Per capita purchases of the individual games were regressed agains t variables measuring income, black and Hispanic populations, education lev els, gender, age, and the purchases of other lottery products. The results reveal that each of the games is highly regressive and that one, the instan t game, should be classified as an inferior good. Furthermore, differences among the games indicate the move regressive games are purchased more than proportionately by black and Hispanic minorities, by people with lower educ ation levels, and by older people. Finally, the results reveal that the var ious lottery products are complementary goods.