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Impact of Casino Gambling and Lotteries on Demand for Other ‘Sin’ Goods
Atlantic Economic Journal Pub Date : 2020-08-29 , DOI: 10.1007/s11293-020-09678-y
Adrian R. Fleissig

Public policy aimed at reducing consumption of tobacco or alcohol products often results in purchases of lower-taxed alternatives. Many studies find tobacco and alcohol to be habit-forming, so taxing these commodities often has little impact in reducing purchases. There is much evidence that different alcohol and tobacco products are either substitutes or complements in use but these studies exclude the impact of casino gambling and lotteries. This is surprising given the evidence of high returns for companies investing in all types of ‘sin’ goods. The demand for ‘sin’ goods is analyzed using both myopic and rational habit-forming models. Durability was found to be largest for wine and tobacco and lowest for casino gambling. Tobacco and beer were the most net habit-forming commodities. All ‘sin’ goods were net habit-forming in the rational model, but under myopic habit formation, spirits and wine were net durable goods. The research highlights the importance of including casino gambling and lotteries, which are typically excluded when estimating substitution or complementarity between ‘sin’ goods. Casino gambling and lotteries are both net habit-forming and are substitutes in use for each other. Imposing taxes to reduce the misuse of alcohol and tobacco products is likely to have some unintended consequences, such as increases in personal expenditure on casino gambling and lotteries.

中文翻译:

赌场赌博和彩票对其他“罪恶”商品需求的影响

旨在减少烟草或酒精产品消费的公共政策通常会导致购买税收较低的替代品。许多研究发现烟草和酒精会形成习惯,因此对这些商品征税通常对减少购买量几乎没有影响。有很多证据表明,不同的酒精和烟草产品在使用中要么是替代品,要么是互补品,但这些研究排除了赌场赌博和彩票的影响。鉴于公司投资于所有类型的“罪恶”商品的高回报的证据,这令人惊讶。使用近视和理性习惯形成模型分析对“罪恶”商品的需求。葡萄酒和烟草的耐用性最大,赌场赌博的耐用性最低。烟草和啤酒是最容易形成习惯的商品。在理性模型中,所有“罪恶”商品都是净习惯形成的,但在近视习惯形成下,烈酒和葡萄酒是净耐用品。该研究强调了包括赌场赌博和彩票的重要性,在估计“罪恶”商品之间的替代或互补性时,通常将其排​​除在外。赌场赌博和彩票都是净习惯形成的,并且是彼此使用的替代品。征税以减少酒精和烟草产品的滥用可能会产生一些意想不到的后果,例如赌场赌博和彩票的个人支出增加。赌场赌博和彩票都是净习惯形成的,并且是彼此使用的替代品。征税以减少酒精和烟草产品的滥用可能会产生一些意想不到的后果,例如赌场赌博和彩票的个人支出增加。赌场赌博和彩票都是净习惯形成的,并且是彼此使用的替代品。征税以减少酒精和烟草产品的滥用可能会产生一些意想不到的后果,例如赌场赌博和彩票的个人支出增加。
更新日期:2020-08-29
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