THE (AGGREGATE) DEMAND FOR STATE-LOTTERY TICKETS: WHAT HAVE WE REALLY LEARNED?

Lottery-demand models using aggregate data are often used to make inferences regarding individual behavior, the most important being the distributional burden of lottery-ticket expenditures. It is shown here that estimates for the income elasticity and the cross-price elasticity will only be represe...

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Publicado en:Contemporary Economic Policy Vol. 34; no. 3; pp. 475 - 483
Autor principal: Garrett, Thomas A.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE (AGGREGATE) DEMAND FOR STATE-LOTTERY TICKETS: WHAT HAVE WE REALLY LEARNED?
      aug:
        au: Garrett, Thomas A.
        affil: Department of Economics, University of Mississippi, University MS 38677
      su:
        Consumption (Economics)
        Income
        Elasticity (Economics)
        Cross-sectional method
        Consumer behavior
        Lottery tickets
      sug:
        subj:
          Consumption (Economics)
          Income
          Elasticity (Economics)
          Cross-sectional method
          Consumer behavior
          Lottery tickets
      ab: Lottery-demand models using aggregate data are often used to make inferences regarding individual behavior, the most important being the distributional burden of lottery-ticket expenditures. It is shown here that estimates for the income elasticity and the cross-price elasticity will only be representative of individual behavior under extremely restrictive assumptions. In fact, estimation of aggregate-demand models presupposes that the income elasticity is equal to one. Cross-sectional analyses using microlevel data face similar restrictions on consumer behavior. Remedies are discussed, but more conclusive evidence on the distributional burden of lotteries will remain elusive until better individual-level data become available. (JEL D11, H71, H22)
      pubtype: Academic Journal
      doctype: Article
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    language: English
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