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Do people gamble more in good times? Evidence from 27 European countries

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  • Eduard Baumöhl
  • Eva Výrostová

Abstract

We provide evidence of a positive relationship between the intensity of gambling and economic growth in 27 European countries for 2005–2013. Our proxy for gambling is represented by government revenues from taxes on lotteries, betting and gambling. This variable is linked to GDP growth in a panel regression framework and pooled OLS. However, when we split our sample to account for the heterogeneity among European countries, we found that the positive ‘gambling – GDP growth’ relationship is driven extensively by the Central and Eastern European countries. It appears that people in these countries tend to gamble more when the economy is expanding.

Suggested Citation

  • Eduard Baumöhl & Eva Výrostová, 2017. "Do people gamble more in good times? Evidence from 27 European countries," Applied Economics Letters, Taylor & Francis Journals, vol. 24(18), pages 1311-1314, October.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:18:p:1311-1314
    DOI: 10.1080/13504851.2016.1273484
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    1. Clotfelter, Charles T & Cook, Philip J, 1990. "On the Economics of State Lotteries," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 105-119, Fall.
    2. Martin Young & Francis Markham, 2015. "Beyond disclosure: gambling research, political economy, and incremental reform," International Gambling Studies, Taylor & Francis Journals, vol. 15(1), pages 6-9, April.
    3. Meir Gross, 1998. "Legal Gambling as a Strategy for Economic Development," Economic Development Quarterly, , vol. 12(3), pages 203-213, August.
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    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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