Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005
This paper estimates, using the most recent Irish Household Budget Survey of 2004/2005, a double hurdle model to determine the socio-economic and socio-demographic factors affecting participation and expenditure of Irish households on the national lottery. Of particular interest is the effect of income on the decisions of how much participants spend on the lottery. The paper also determines the extent to which the tax inherent in lottery purchases is regressive in its incidence on purchasers. It is found that gender, social class, marital status, the presence of children in the home and household size significantly effect lottery participation. Lottery expenditures are affected by income, location of the household, gender, age, education, social class and whether the household has positive betting expenditures. Furthermore, there is evidence that the implicit lottery tax is regressive and that the allocation of lottery proceeds does not compensate for this regressivity
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Garcia, Jaume & Labeaga, Jose M, 1996. "Alternative Approaches to Modelling Zero Expenditure: An Application to Spanish Demand for Tobacco," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 489-506, August.
- John R. Livernois, 1986. "The Taxing Game of Lotteries in Canada," Canadian Public Policy, University of Toronto Press, vol. 12(4), pages 622-627, December.
- Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
- Nolan, Brian, 2009. "Income Inequality and Public Policy," The Economic and Social Review, Economic and Social Studies, vol. 40(4), pages 489-510.
- Bailey, Stephen J & Connolly, Stephen, 1997. "The National Lottery: A Preliminary Assessment of Net Additionality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(1), pages 100-112, February.
- Seval Mutlu & Azucena Gracia, 2006. "Spanish food expenditure away from home (FAFH): by type of meal," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1037-1047.
- Carol Newman & Maeve Henchion & Alan Matthews, 2001.
"A Double-Hurdle Model of Irish Household Expenditure on Prepared Meals,"
Trinity Economics Papers
200119, Trinity College Dublin, Department of Economics.
- Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1053-1061.
- David Aristei & Luca Pieroni, 2008.
"A double-hurdle approach to modelling tobacco consumption in Italy,"
Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
- David Aristei & Luca Pieroni, 2007. "A Double-Hurdle Approach to Modelling Tobacco Consumption in Italy," Quaderni del Dipartimento di Economia, Finanza e Statistica 29/2007, Università di Perugia, Dipartimento Economia.
- Lunn, Pete, 2007. "Fair Play? Sport and Social Disadvantage in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BMI190.
- Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-52, September.
- Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
- Levi PÃ©rez & Brad R. Humphreys, 2011. "The Income Elasticity of Lottery: New Evidence from Micro Data," Public Finance Review, , vol. 39(4), pages 551-570, July.
- Yen, Steven T. & Su, Shew-Jiuan, 1995. "Modeling U.S. Butter Consumption With Zero Observations," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April.
- Victoria Ateca-Amestoy, 2008. "Determining heterogeneous behavior for theater attendance," Journal of Cultural Economics, Springer, vol. 32(2), pages 127-151, June.
- Yen, Steven & Jensen, Helen H., 1996.
"Determinants of Household Expenditures on Alcohol,"
Staff General Research Papers
927, Iowa State University, Department of Economics.
- Steven T. Yen & Helen H. Jensen, 1995. "Determinants of Household Expenditures on Alcohol," Center for Agricultural and Rural Development (CARD) Publications 95-wp144, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Yen, Steven & Su, Shew-Jiuan, 1995. "Modeling U.S. Butter Consumption with Zero Observations," Staff General Research Papers 863, Iowa State University, Department of Economics.
- Humphreys, Brad & Lee, Yang Seung & Soebbing, Brian, 2009. "Consumer Behaviour in Lotto Markets: The Double Hurdle Approach and Zeros in Gambling Survey Data," Working Papers 2009-27, University of Alberta, Department of Economics.
- John Sawkins & Valerie Dickie, 2002. "National Lottery participation and expenditure: preliminary results using a two stage modelling approach," Applied Economics Letters, Taylor & Francis Journals, vol. 9(12), pages 769-773.
- Steven Yen, 2005. "Zero observations and gender differences in cigarette consumption," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1839-1849.
- Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
- Farrell, Lisa & Walker, Ian, 1999. "The welfare effects of lotto: evidence from the UK," Journal of Public Economics, Elsevier, vol. 72(1), pages 99-120, April.
- Fahey, Tony & Layte, Richard & Gannon, Brenda, 2004. "Sports Participation and Health among Adults in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BMI178.
When requesting a correction, please mention this item's handle: RePEc:eso:journl:v:43:y:2012:i:2:p:199-225. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Walsh)
If references are entirely missing, you can add them using this form.