IDEAS home Printed from https://ideas.repec.org/a/eso/journl/v43y2012i2p199-225.html
   My bibliography  Save this article

Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005

Author

Listed:
  • FRANK CROWLEY

    (University College Cork)

  • JOHN EAKINS

    (University College Cork)

  • DECLAN JORDAN

    (University College Cork)

Abstract

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

Suggested Citation

  • Frank Crowley & John Eakins & Declan Jordan, 2012. "Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 199-225.
    • Handle: RePEc:eso:journl:v:43:y:2012:i:2:p:199-225
    as

    Download full text from publisher

    File URL: https://www.esr.ie/article/view/47/39
    File Function: First version,2012
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Lunn, Pete, 2007. "Fair Play? Sport and Social Disadvantage in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BMI190, June.
    3. Levi Pérez & Brad R. Humphreys, 2011. "The Income Elasticity of Lottery: New Evidence from Micro Data," Public Finance Review, , vol. 39(4), pages 551-570, July.
    4. 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), pages 1-9, April.
    5. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    6. 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.
    7. Nolan, Brian, 2009. "Income Inequality and Public Policy," The Economic and Social Review, Economic and Social Studies, vol. 40(4), pages 489-510.
    8. Victoria Ateca-Amestoy, 2008. "Determining heterogeneous behavior for theater attendance," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(2), pages 127-151, June.
    9. 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 829-844, September.
    10. 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.
    11. 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.
    12. 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.
    13. Steven Yen, 2005. "Zero observations and gender differences in cigarette consumption," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1839-1849.
    14. 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, June.
    15. Scott, Frank & Garen, John, 1994. "Probability of purchase, amount of purchase, and the demographic incidence of the lottery tax," Journal of Public Economics, Elsevier, vol. 54(1), pages 121-143, May.
    16. 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.
    17. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
    18. Yen, Steven & Su, Shew-Jiuan, 1995. "Modeling U.S. Butter Consumption with Zero Observations," Staff General Research Papers Archive 863, Iowa State University, Department of Economics.
    19. 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..
    20. 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.
    21. 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.
    22. James Carroll & Siobhan McCarthy & Carol Newman, 2005. "An Econometric Analysis of Charitable Donations in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 229-249.
    23. Charles T. Clotfelter & Philip J. Cook, 1987. "Implicit Taxation in Lottery Finance," NBER Working Papers 2246, National Bureau of Economic Research, Inc.
    24. Brad R. Humphreys & Yang Seung Lee & Brian P. Soebbing, 2010. "Consumer behaviour in lottery: the double hurdle approach and zeros in gambling survey data," International Gambling Studies, Taylor & Francis Journals, vol. 10(2), pages 165-176, August.
    25. S.J. Bailey & Stephen Connolly, 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.
    26. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tim Friehe & Mario Mechtel, 2017. "Gambling to leapfrog in status?," Review of Economics of the Household, Springer, vol. 15(4), pages 1291-1319, December.
    2. Tansel, Aysit & Keskin, Halil Ibrahim, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," IZA Discussion Papers 11210, Institute of Labor Economics (IZA).
    3. Giuliano Resce & Raffaele Lagravinese & Elisa Benedetti & Sabrina Molinaro, 2019. "Income-related inequality in gambling: evidence from Italy," Review of Economics of the Household, Springer, vol. 17(4), pages 1107-1131, December.
    4. Giebeler, Constanze & Rebeggiani, Luca, 2019. "Who Loves to Gamble? Socio-Economic Factors Determining Gambling Behaviour in Germany," MPRA Paper 94735, University Library of Munich, Germany.
    5. Eakins, John, 2016. "An application of the double hurdle model to petrol and diesel household expenditures in Ireland," Transport Policy, Elsevier, vol. 47(C), pages 84-93.
    6. Jiang, Yuan & House, Lisa A., 2017. "Comparison of the Performance of Count Data Models under Different Zero-Inflation Scenarios Using Simulation Studies," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258342, Agricultural and Applied Economics Association.
    7. Aysit Tansel & Halil Ibrahim Keskin, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1721, Koc University-TUSIAD Economic Research Forum.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eakins, John, 2016. "An application of the double hurdle model to petrol and diesel household expenditures in Ireland," Transport Policy, Elsevier, vol. 47(C), pages 84-93.
    2. James Rude & Yves Surry & Robert Kron, 2014. "A generalized double-hurdle model of Swedish gambling expenditures," Applied Economics, Taylor & Francis Journals, vol. 46(34), pages 4151-4163, December.
    3. Rong-Chang Jou & Yi-Hao Lu, 2021. "Car/Motorbike Drivers’ Willingness to Use and to Pay for Alcohol Interlock in Taiwan," IJERPH, MDPI, vol. 18(21), pages 1-18, November.
    4. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).
    5. John Eakins, 2016. "Household gambling expenditures and the Irish recession," International Gambling Studies, Taylor & Francis Journals, vol. 16(2), pages 211-230, August.
    6. Anne Wambui Mumbi & Tsunemi Watanabe, 2021. "Willingness to Pay and Participate in Improved Water Quality by Lay People and Factory Workers: A Case Study of River Sosiani, Eldoret Municipality, Kenya," Sustainability, MDPI, vol. 13(4), pages 1-30, February.
    7. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    8. Feng Zhang & Chung L. Huang & Biing-Hwan Lin & James E. Epperson, 2008. "Modeling fresh organic produce consumption with scanner data: a generalized double hurdle model approach," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 510-522.
    9. Bilgic, Abdulbaki & Florkowski, Wojciech J. & Yen, Steven T. & Akbay, Cuma, 2013. "Tobacco spending patterns and their health-related implications in Turkey," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 1-15.
    10. Humphreys, Brad & Perez, Levi, 2011. "Lottery Participants and Revenues: An International Survey of Economic Research on Lotteries," Working Papers 2011-17, University of Alberta, Department of Economics.
    11. Giebeler, Constanze & Rebeggiani, Luca, 2019. "Who Loves to Gamble? Socio-Economic Factors Determining Gambling Behaviour in Germany," MPRA Paper 94735, University Library of Munich, Germany.
    12. David Aristei & Federico Perali & Luca Pieroni, 2008. "Cohort, age and time effects in alcohol consumption by Italian households: a double-hurdle approach," Empirical Economics, Springer, vol. 35(1), pages 29-61, August.
    13. 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.
    14. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    15. Nomsa Y. Nkomo & Beatrice D. Simo-Kengne & Mduduzi Biyase, 2021. "The impact of mental health behaviour on tobacco consumption in South Africa," Economic Development and Well-being Research Group Working Paper Series edwrg-02-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    16. Tim Friehe & Mario Mechtel, 2017. "Gambling to leapfrog in status?," Review of Economics of the Household, Springer, vol. 15(4), pages 1291-1319, December.
    17. Federico Perali & David Aristei & Luca Pieroni, 2005. "Cohort analysis of alcohol consumption: a double hurdle approach," CHILD Working Papers wp09_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    18. Martinez-Espineira, Roberto, 2006. "A Box-Cox Double-Hurdle model of wildlife valuation: The citizen's perspective," Ecological Economics, Elsevier, vol. 58(1), pages 192-208, June.
    19. Bardazzi, Rossella & Pazienza, Maria Grazia, 2018. "Ageing and private transport fuel expenditure: Do generations matter?," Energy Policy, Elsevier, vol. 117(C), pages 396-405.
    20. Levi Pérez & Brad R. Humphreys, 2011. "The Income Elasticity of Lottery: New Evidence from Micro Data," Public Finance Review, , vol. 39(4), pages 551-570, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aedin Doris (email available below). General contact details of provider: https://www.esr.ie .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.