The Income Elasticity of Lottery: New Evidence from Micro Data
AbstractThe authors analyze consumer expenditure on the National Lottery in Spain, a popular game with over 100 draws per year and annual turnover of about three billion euros. Based on Tobit estimates using data from two nationally representative surveys, National Lottery players tend to be middle-aged married males with relatively low education. In contrast to previous research, the authors find a strong relationship between lottery expenditure and income, with estimated income elasticities of more than one. A parameter decomposition indicates that the effect of income on expenditure works through existing lottery players, not by attracting new players.
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Bibliographic InfoArticle provided by in its journal Public Finance Review.
Volume (Year): 39 (2011)
Issue (Month): 4 (July)
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- Frank Crowley & John Eakins & Declan Jordan, 2012. "Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 199â225.
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"Gambling to Leapfrog in Status?,"
CESifo Working Paper Series
4174, CESifo Group Munich.
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