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Article
An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan
Topics in Economic Analysis & Policy (2008)
  • Wen-Chun Chang
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.

Keywords
  • rational addiction,
  • gambling,
  • lottery
Publication Date
February 29, 2008
Citation Information
Wen-Chun Chang. "An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan" Topics in Economic Analysis & Policy 4.1 (2004). Available at: http://works.bepress.com/wen_chun_chang/6