The demand for lottery expenditure in Taiwan: a quantile regression approach

This paper is a pioneering attempt to apply the quantile regression method (QRM) to the demand for lottery expenditure in order to consider the extreme behavior of lottery expenditure as well as clarify the diverse results obtained from previous studies on lottery expenditure. The results of this study reveal that there exists a complementary correlation both between benevolent donations and lottery expenditure, and between entertainment expenditure and lottery expenditure. By contrast, the results from using OLS reveal that benevolent donations do not have a significant impact on lottery expenditure and that entertainment expenditure does not have a negative impact on lottery expenditure. Besides, expenditure on cigarettes and alcohol is found to have a positive impact on lottery expenditure, which coincides with the results of Balabanis (2002).