Participation, expenditure and regressivity in the Irish lottery: evidence from Irish household budget survey 2004-05
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Date
2012-08
Authors
Crowley, Frank
Eakins, John
Jordan, Declan
Journal Title
Journal ISSN
Volume Title
Publisher
Economic and Social Studies Dublin
Published Version
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 effects 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.
Description
Keywords
Irish Household Budget Survey , Irish national lottery , Lottery expenditures
Citation
Crowley, F., Eakins, J., Jordan, D. (2012) 'Participation, Expenditure and Regressivity in the Irish Lottery: Evidence from Irish Household Budget Survey 2004-05'. Economic and Social Review, 43 (2):199-225. http://www.esr.ie/vol43_2/ESRTOC43_2.htm
Copyright
Economic and Social Review retains rights to the original journal article in all media.