Abstract:
The lotteries serve as an important source of government revenue in many states and economies. This triggers many public finance economists to conduct both theoretical and empirical works in examining the lottery revenue potential and desirability as a method of taxation. Therefore, this study applies an econometric analysis to investigate the drivers of lottery revenue using monthly data between January 2010 and June 2016 from Lagos State. The results reveal that Lagos Gross Domestic Products and inflation rate are critical factors that influence the long-term government revenue generated from lottery activities in Lagos State. However, seasonality -related events significantly affect short -run movements of lottery revenue in the State. The decomposition of the seasonality into football season, Christmas season, and Ramadan season, indicates that its short term lottery revenue is significantly influenced by the Christmas season. In addition, the lottery revenue exhibits a tendency to return to the long-run relationship in the presence of any shock, with the adjustment speed of about 51 percent in a month. |
International Journal of Social Science & Economic Research
