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Using Spatial Distribution of Outlets to Estimate Gambling Incidence

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  • Momi Dahan

Abstract

The paper proposes a simple and innovative methodology for measuring the incidence of gambling expenditure in countries for which household survey data is unavailable or unreliable. A first application of this methodology is presented by merging data on the geographical location of gambling outlets, together with residents’ socio-economic and demographic characteristics around that location across all of the 1,600 statistical areas in Israel. It was found that the Israel National Lottery (Lotto) and Toto tend to set up significantly more sales points in disadvantaged neighborhoods after controlling for standard list of factors such as population size and composition. The Suit Index is calculated based on the spatial estimation results and yields a measure of -0.42, which implies that the implicit tax associated with gambling is highly regressive.

Suggested Citation

  • Momi Dahan, 2017. "Using Spatial Distribution of Outlets to Estimate Gambling Incidence," CESifo Working Paper Series 6583, CESifo.
    • Handle: RePEc:ces:ceswps:_6583
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6583.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    incidence; gambling; location policy;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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