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An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan

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  • Chang Wen-Chun

    (National Taipei University)

Abstract

This study analyzes gambling addiction in Taiwan by using lottery data from 1978 to 1984. Two main conclusions can be drawn from the empirical evidence of this study. First, lottery play is strongly addictive in Taiwan, and the results are consistent with the theory of rational addiction. Second, the estimated short-run and long-run price elasticities are -0.136, and -1.463, respectively. Because consumers are very likely rational, the concerns of public policy toward gambling should focus on the negative externalities rather than on its addictive nature.

Suggested Citation

  • Chang Wen-Chun, 2004. "An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-17, October.
    • Handle: RePEc:bpj:bejeap:v:topics.4:y:2004:i:1:n:27
    DOI: 10.2202/1538-0653.1269
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    References listed on IDEAS

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    1. Richard Strouse & Barbara Carlson & John Hall, "undated". "Report on Survey Methods for the Community Tracking Study's 1998-1999 Round Two Household Survey (Appendices)," Mathematica Policy Research Reports c54f48c5be584d29893813682, Mathematica Policy Research.
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    Cited by:

    1. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.

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