A dynamic model of Gambling addiction with social costs: theory and policy solutions

A dynamic model of Gambling addiction with social costs: theory and policy solutions

Edited by: Leonardo Becchetti, Nazaria Solferino, Maria Elisabetta Tessitore – University of Rome Tor Vergata

We investigate the effects of gambling addiction in a dynamic model in which wellbeing crucially depends on the accumulation of relational goods which is weakened by the consumption of gambling. We outline conditions under which gambling may become addictive leading to a suboptimal equilibrium from a social point of view. We examine the relative effectiveness of different policy solutions (tax on gambling, gambling restrictions) in bridging the distance between the equilibrium without intervention and social optimum.

 

http://www.aiccon.it/working_paper_scheda.cfm?wid=324&archivio=C

http://www.aiccon.it/working_paper_scheda.cfm?wid=324&archivio=C
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