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Gambling with Stimulus Payments: Feeding Gaming Machines with Federal Dollars

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Abstract

In late 2008 and early 2009 the Australian Federal Government introduced a series of economic stimulus packages designed to maintain consumer spending in the early days of the Great Recession. When these packages were initiated the media suggested that the wide-spread availability of electronic gaming machines(EGMs, eg. slot machines, poker machines, video lottery terminals) in Australia would result in stimulating the EGMs. Using state level monthly data we estimate the degree to which the stimulus payments influenced EGM expenditure and the implications for state and territory gaming tax revenues.

Suggested Citation

  • Joe Hirschberg & Jenny Lye, 2013. "Gambling with Stimulus Payments: Feeding Gaming Machines with Federal Dollars," Department of Economics - Working Papers Series 1166, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1166
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    1. Cletus C. Coughlin & Thomas A. Garrett, 2009. "Income and Lottery Sales," Public Finance Review, , vol. 37(4), pages 447-469, July.
    2. Productivity Commission, 2005. "Economic Implications of an Ageing Australia," Labor and Demography 0506001, University Library of Munich, Germany.
    3. Cletus C. Coughlin & Thomas A. Garrett, 2008. "Income and lottery sales: transfers trump income from work and wealth," Working Papers 2008-004, Federal Reserve Bank of St. Louis.
    4. Maharashtra Government, 2007. "Commission of Inquiry," Working Papers id:915, eSocialSciences.
    5. Productivity Commission, 2005. "Economic Implications of an Ageing Australia," Research Reports, Productivity Commission, Government of Australia, number 16, January.
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