Gambling, saving, and lumpy liquidity needs
I present evidence that unmet liquidity needs for indivisible, “lumpy,” expenditures increase demand for betting as a second-best method of liquidity generation in the presence of financial constraints. With a sample of 1,708 sports bettors in Kampala, Uganda, I show that participants’ targeted payo...
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
American Economic Association
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/142317 |
| _version_ | 1855515194936000512 |
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| author | Herskowitz, Sylvan |
| author_browse | Herskowitz, Sylvan |
| author_facet | Herskowitz, Sylvan |
| author_sort | Herskowitz, Sylvan |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | I present evidence that unmet liquidity needs for indivisible, “lumpy,” expenditures increase demand for betting as a second-best method of liquidity generation in the presence of financial constraints. With a sample of 1,708 sports bettors in Kampala, Uganda, I show that participants’ targeted payouts are linked to anticipated expenditures, while winnings increase lumpy expenditures disproportionately. I show that a randomized savings treatment decreases demand for betting. And I use two lab-in-the-field experiments to show that unmet liquidity needs and saving ability are important mechanisms. These results cannot be explained by betting as a purely normal good. (JEL C93, D81, G51, L83, O12, O16) |
| format | Journal Article |
| id | CGSpace142317 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | American Economic Association |
| publisherStr | American Economic Association |
| record_format | dspace |
| spelling | CGSpace1423172025-12-08T10:06:44Z Gambling, saving, and lumpy liquidity needs Herskowitz, Sylvan expenditure liquidity savings I present evidence that unmet liquidity needs for indivisible, “lumpy,” expenditures increase demand for betting as a second-best method of liquidity generation in the presence of financial constraints. With a sample of 1,708 sports bettors in Kampala, Uganda, I show that participants’ targeted payouts are linked to anticipated expenditures, while winnings increase lumpy expenditures disproportionately. I show that a randomized savings treatment decreases demand for betting. And I use two lab-in-the-field experiments to show that unmet liquidity needs and saving ability are important mechanisms. These results cannot be explained by betting as a purely normal good. (JEL C93, D81, G51, L83, O12, O16) 2021-01-01 2024-05-22T12:10:18Z 2024-05-22T12:10:18Z Journal Article https://hdl.handle.net/10568/142317 en Limited Access American Economic Association Herskowitz, Sylvan. 2021. Gambling, saving, and lumpy liquidity needs. American Economic Journal: Applied Economics 13(1): 72-104. https://doi.org/10.1257/app.20180177 |
| spellingShingle | expenditure liquidity savings Herskowitz, Sylvan Gambling, saving, and lumpy liquidity needs |
| title | Gambling, saving, and lumpy liquidity needs |
| title_full | Gambling, saving, and lumpy liquidity needs |
| title_fullStr | Gambling, saving, and lumpy liquidity needs |
| title_full_unstemmed | Gambling, saving, and lumpy liquidity needs |
| title_short | Gambling, saving, and lumpy liquidity needs |
| title_sort | gambling saving and lumpy liquidity needs |
| topic | expenditure liquidity savings |
| url | https://hdl.handle.net/10568/142317 |
| work_keys_str_mv | AT herskowitzsylvan gamblingsavingandlumpyliquidityneeds |