The Study of Demand for Taiwan''s Lottery and its Tax Incidence

• Main Authors: Bi-Wen Chen, 陳壁紋
• Other Authors: Kung-Chen Lin
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/69742038578372159323

碩士 === 逢甲大學 === 會計與財稅所 === 90 === The Study of Demand for Taiwan’s Lottery and its Tax Incidence Abstract Currently, there are more than 90 countries that legalized the issues of lottery. For the government, the issue of lottery may reduce the illegal gambling, provide another way of entertainment, and increase the government fiscal revenues. Taiwan’s government officially legalized the issue of lottery in the January of 2002. Since then, people are crazy about purchasing lotto. Therefore, the Legislative Yuan urged Department of Finance to cool down the eagerness of buying lotto. What are the reasons that result in this phenomenon? The purpose of this study is to examine what are the main factors that affect the demand for Taiwan’s lottery, who are the main tax incidence of the lottery, and the substitutability or complementarity between lottery and illegal gambling. We collected 1853 survey samples in Taiwan area from April 1 to April 30 applied SPSS and LIMDEP software to estimate. The empirical results show: (1) the demographic and socioeconomic variables of location, sex, age, marry status, occupation, education, religion, and individual income represent statistically significant with the expenditure of lotto. Furthermore, urban individuals purchased more than the rural individuals did, male spent more than female did in lotto, and persons with age between 25 and 44 purchased more. Individuals with married, education above high school, Buddhist, or monthly income between 20 and 40 thousands dollars purchased more. (2) Based on the individual income, the estimated Suits index is between $20,000 and $40,000. This result confirms similar findings overseas on the income regressivity of gambling expenditures. All other things being equal, Number Lotto is the most regressive of the major gambling products in their incidence on Taiwan’s household. (3) Finally, the tests of Computer Lotto with legal Number or Instant Lotto represent complementary, whereas the test of Computer Lotto with illegal gambling represents substitutable.