Publicação
Do lottery sales differ across income classes becoming an inferior good for rich countries?
| Resumo: | Do the populations of low per-capita income countries participate with a stronger desire to win and spent relatively more money on lottery products? Is such a desire to buy lottery products constant, or does it decrease when the country reaches a higher per-capita income class? To answer these questions, this paper tests the hypothesis that per-capita lottery sales vary across income classes in addition to the hypothesis that the income elasticity of demand for lottery products differs across income class countries. Using an econometric model with significant control variables, the results confirm the hypothesis that per-capita lottery sales vary positively with income classes and that lottery spending differs between classes. The results also show that the lower income-class countries spend more than the higher income-class countries, suggesting, but not confirming, that the lottery may be an inferior good in countries having the highest levels of per-capita GDP. |
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| Autores principais: | Faustino, Horácio C. |
| Outros Autores: | Kaizeler, Maria João |
| Assunto: | elasticity of demand income class gambling |
| Ano: | 2009 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | Do the populations of low per-capita income countries participate with a stronger desire to win and spent relatively more money on lottery products? Is such a desire to buy lottery products constant, or does it decrease when the country reaches a higher per-capita income class? To answer these questions, this paper tests the hypothesis that per-capita lottery sales vary across income classes in addition to the hypothesis that the income elasticity of demand for lottery products differs across income class countries. Using an econometric model with significant control variables, the results confirm the hypothesis that per-capita lottery sales vary positively with income classes and that lottery spending differs between classes. The results also show that the lower income-class countries spend more than the higher income-class countries, suggesting, but not confirming, that the lottery may be an inferior good in countries having the highest levels of per-capita GDP. |
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