Consumer Behaviour in Lotto Markets: The Double Hurdle Approach and Zeros in Gambling Survey Data
AbstractGovernments world-wide increasingly rely on gambling revenues, increasing the importance of understanding who gambles and why. Previous literature used Tobit and Heckman models to statistically analyze participation in gambling. These models make strong assumptions about the nature of gambling participation. We examine the double hurdle model as an alternative to other statistical approaches to modeling gambling participation and spending. Our results, based on data from a 2002 survey of gambling prevalence in Alberta, clearly prefer the double hurdle mode, which yields different results than the commonly used Tobit model.
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Bibliographic InfoPaper provided by University of Alberta, Department of Economics in its series Working Papers with number 2009-27.
Length: 14 pages
Date of creation: 01 Nov 2009
Date of revision:
gambling; censored regression; double hurdle model;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-19 (All new papers)
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