Are Consumers More Willing to Invest in Luck During Recessions?

Sara Capacci (), Emanuela Randon () and Antonello Scorcu
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Emanuela Randon: University of Bologna

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2017, vol. 3, issue 1, No 2, 25-38

Abstract: Abstract We use monthly data on gross expenditure on luck and skill games in Italy to investigate whether people react to recessions investing in activities based on fortune or ability. Luck game expenditure is volatile and positively correlated with unemployment in economic downturns. Naive consumers tend to consider luck games as a potential source of additional income during recessions. Skill game expenditure is persistent over time and uncorrelated with the unemployment rate, suggesting a more balanced attitude of skill consumers. This study provides evidence on the prevailing behavior and reaction of expert or naïve consumers when facing economic downturns.

Keywords: Gambling; Great Recession; Italy; Unemployment (search for similar items in EconPapers)
JEL-codes: D12 G01 L83 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s40797-016-0043-x

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