Research On The Problem Of Chinese Lottery Funds From The Perspective Of Welfare Fairness

Since China has issued the ifrst lottery in1987, lottery sales have continued togrow and community chest have made great contributions to the social welfareprograms and sports. With the expanding of lottery market, scholars have useddifferent methods to study lottery funds from different respects. Among them，someone has found that Chinese lottery buyers are mainly low-income people，whilebcncficiarics are mainly high earners. The distribution structure and usage of lotteryfunds (especially community chest) are unreasonable and inefficient, which is againstthe lottery’s public welfare goal to some extent. In this regard, it is necessary toconduct an in-depth study on Chinese lottery funds in this paper, focused on thecollection and distribution two aspects to analyze the lottery funds’ welfare equityproblem.Firstly, the paper reviews literatures on lottery funds research at home and abroad.Secondly, the paper describes the collection, distribution structure and usage of lotteryfunds. Thirdly, an empirical study is given to the lottery funds in varying-coefficientpanel data models. On one hand, the paper establishes the regression model ofChinese lottery sales and weighted per-capita income to analyze the welfare equity oflottery fund’s collection, and on the other，the paper establishes the regression modelof local lottery community chest and ifscal expenditure on social welfare to analyzethe welfare equity of lottery f’unds distribution.This paper has come to the conclusion mainly includes: firstly, Chinese lotteryf’iinds collection is regressive generally in recent years (especially in2008and2009);there is a higher spending in some economically backward regions, while a relativelylower spending in some economically developed areas. Judging from different issuers,the regression of China welfare lottery*collection is s significantly greater than thesports lottery’s. Judging from the different types, in regression, the sequence fromhigh to low was instant gamcs>lotto>quiz-style games, which has a lot to do with the buying motivation and the rule of games. Secondly, on the whole, a lager increasingof community chest results in a smaller increasing of fiscal expenditure on socialwelfare. Community chest does not significantly enhance the ifnancial expenditure onsocial welfare, especially in some economically backward areas. Judging fromdifferent issuers, the contribution of welfare lottery’ community chest is greater thansport lottery, which has a lot to do with the total volume, allocation proportion, anduse efficiency of the community chest.In conclusion，major participators belong to low-income class and the distributionstructure and usage of community chest are inefficient, which affect the fainress insocial welfare arid hinder the healthy development of lottery industry in the future.With the development of economy and the increase of resident income, how to attracthigh-income participators and increase the efifciency of community chest is theproblem to be solved urgently.