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The Income Elasticity of Gambling in Australia and New Zealand

Deakin Papers on International Business Economics

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Title The Income Elasticity of Gambling in Australia and New Zealand
 
Creator Davies, Jamie
 
Description This paper analyses disposable income as it relates to consumer demand for gambling products in Australia and New Zealand from Financial years (FY) 1998 to 2008. The hypothesis is that income elasticity of demand for gambling products is greater than one i.e. gambling products are a luxury good. The alternate hypothesis is that the income elasticity of demand for gambling products are less than one and are classed as either necessity or inferior goods. Data compiled by the Queensland Treasury and Trade department, the Australian Bureau of Statistics, Statistics New Zealand and the New Zealand Department of Internal Affairs was used to calculate income elasticities for all gambling products. The results indicate that income elasticity for gambling products varies over time and is greater than one pre FY2003 and less than one post FY2003. However, once the change in market share of different gambling products and the large increase in supply in the gaming industry sector (pre FY2003) was accounted for, income elasticities were estimated to be less than one in support of the alternate hypothesis.
 
Publisher Deakin University
 
Contributor —
 
Date 2015-12-14
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier https://ojs.deakin.edu.au/index.php/dpibe/article/view/509
10.21153/dpibe2015vol8no1art509
 
Source Deakin Papers on International Business Economics; Vol 8 (2015)
2206-4060
 
Language eng
 
Relation https://ojs.deakin.edu.au/index.php/dpibe/article/view/509/517