Mitigating the Combined Distributional Consequences of the Georgia Lottery for Education and the HOPE Scholarship

Objective. Research demonstrates that nonwhite, lower-income households bear the Georgia Lottery's tax burden, yet receive fewer benefits. However, local disparities in grading standards may mitigate the observed income redistribution. Our objective is to determine whether certain localities ob...

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Published in:Social science quarterly Vol. 86; no. 3; pp. 746 - 758
Main Authors: Campbell, Noel, Finney, R. Zachary
Format: Journal Article
Language:English
Published: Oxford, UK Blackwell Publishing 01-09-2005
Blackwell
Southwestern Social Science Association
Blackwell Publishing Ltd
Series:Social Science Quarterly
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Summary:Objective. Research demonstrates that nonwhite, lower-income households bear the Georgia Lottery's tax burden, yet receive fewer benefits. However, local disparities in grading standards may mitigate the observed income redistribution. Our objective is to determine whether certain localities obtain more HOPE scholarships than expected, mitigating the observed redistribution. Method. We use fixed-effects regression and a sample of Georgia's counties (1996-2002). Results. Our results indicate that some localities obtain more HOPE scholarships than expected, mitigating the observed redistribution. Conclusions. We conclude the income-redistribution research result does not reveal a complete picture because it overlooks the HOPE scholarship's extraordinary allocation mechanism.
Bibliography:Direct correspondence to Noel Campbell, Department of Business Administration, North Georgia College & State University, 100 College St., Dahlonega, GA 30597 〈ndcampbell@ugcsu.edu〉. On request, the named author will provide all data and coding information to those wishing to replicate the study. The authors thank Georgia's Center for Agribusiness and Economic Development for allowing the authors access to their data. They also thank John Charles Bradbury, Angeline Close, and Edward Lopez for comments on earlier drafts, and the anonymous referees. All remaining errors are the authors' fault.
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On request, the named author will provide all data and coding information to those wishing to replicate the study. The authors thank Georgia's Center for Agribusiness and Economic Development for allowing the authors access to their data. They also thank John Charles Bradbury, Angeline Close, and Edward Lopez for comments on earlier drafts, and the anonymous referees. All remaining errors are the authors' fault.
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ndcampbell@ugcsu.edu
Direct correspondence to Noel Campbell, Department of Business Administration, North Georgia College & State University, 100 College St., Dahlonega, GA 30597
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ISSN:0038-4941
1540-6237
DOI:10.1111/j.0038-4941.2005.00327.x