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Gambling and the use of credit: an individual and household level analysis

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Author Info

  • Sarah Brown

    ()
    (Department of Economics, The University of Sheffield)

  • Andy Dickerson

    ()
    (Department of Economics, The University of Sheffield)

  • Jolian McHardy

    ()
    (Department of Economics, The University of Sheffield)

  • Karl Taylor

    ()
    (Department of Economics, The University of Sheffield)

Abstract

We explore the relationship between gambling and other forms of risk-taking behaviour, i.e. exposure to debt and the use of credit, at the individual and household level using representative pooled cross-section data drawn from the UK Expenditure and Food Surveys (EFS), 2001 to 2007. Gambling and the use of credit are shown to be positively correlated at the household level. While both the incidence and amount of gambling vary according to household income, the positive association between gambling and the use of credit is remarkably stable across household income. In addition to our household level analysis, we also explore the prevalence of intra-household gambling, which has attracted relatively limited attention in the existing literature. It is apparent that there is strong intra-household correlation in both gambling activity and in the use of credit, with somewhat stronger relationships in lower income households.

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File URL: http://www.shef.ac.uk/economics/research/serps/articles/2010_005.html
File Function: First version, 2010
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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2010005.

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Length: 29 pages
Date of creation: Feb 2010
Date of revision: Feb 2010
Handle: RePEc:shf:wpaper:2010005

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Keywords: Risk-taking; Gambling; Credit; Debt;

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