Lottery Expenditures in Canada: Regional Analysis of Probability of Purchase, Amount of Purchase, and Incidence

Abstract

This article has two purposes: First, to examine the effect of household characteristics on lottery expenditures in six regions of Canada using a double hurdle model to distinguish between the decision to play and the decision of how much to spend. Second, to estimate the incidence of lottery expenditures. Using the 1996 Canadian Family Expenditure Survey, the results portray the profile of households that have the probability of becoming participants in lottery play as well as the profile of households that spend more on lottery purchases. Lottery expenditures are found to be regressive in all regions.

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