Gambling, saving, and lumpy liquidity needs
| dc.creator | Herskowitz, Sylvan | |
| dc.date | 2021-01-01 | |
| dc.date | 2024-05-22T12:10:18Z | |
| dc.date | 2024-05-22T12:10:18Z | |
| dc.date.accessioned | 2026-06-27T14:58:44Z | |
| dc.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) | |
| dc.identifier | https://hdl.handle.net/10568/142317 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/91034 | |
| dc.language | en | |
| dc.publisher | American Economic Association | |
| dc.rights | Limited Access | |
| dc.source | 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 | |
| dc.subject | expenditure | |
| dc.subject | liquidity | |
| dc.subject | savings | |
| dc.title | Gambling, saving, and lumpy liquidity needs | |
| dc.type | Journal Article |