We use data from the Canadian Survey of Household Spending to analyze the relationship between household consumption of four categories of leisure goods and services: sports betting, exercise, watching television, and attending live sporting events. Spending on exercise can affect household health. Recent policy changes expanded access to legal sports betting. Clear theoretical links exist among all four categories. Results from AIDS/QUAIDS models show that household consumption of these leisure goods and services are substitutes, except for attending sporting events and watching television, which are complements. These results have important implications for both health and gambling policy.
This is a preview of subscription content, access via your institution.
Buy single article
Instant access to the full article PDF.
Price excludes VAT (USA)
Tax calculation will be finalised during checkout.
World Health Organization Fact Sheet https://www.who.int/news-room/fact-sheets/detail/physical-activity, accessed August 5, 2019.
Betting on single-event sports is currently legal in the UK, much of the European Union, and Australia.
This includes the basic AIDS and QUAIDS models, the AIDS and QUAIDS model augmented with demographic characteristics using both the unweighted and weighted samples.
The only exceptions are the compensated own price elasticities for “Cable” and the uncompensated own price elasticity for “Attend” in the weighted AIDS model that excludes the base year and is augmented with all demographic characteristics except education.
Banks, J., Blundell, R., & Lewbel, A. (1997). Quadratic Engel curves and consumer demand. Review of Economics and Statistics, 79(4), 527–539.
Bauman, A., Bellew, B., & Craig, C. L. (2015). Did the 2000 Sydney Olympics increase physical activity among adult Australians? British Journal of Sports Medicine, 49(4), 243–247.
Blacklow, P., Nicholas, A., & Ray, R. (2010). Demographic demand systems with application to equivalence scales estimation and inequality analysis: the Australian evidence. Australian Economic Papers, 49(3), 161–179.
Bleakley, A., Jordan, A. B., & Hennessy, M. (2013). The relationship between parents’ and children’s television viewing. Pediatrics, 132(2), 364–371.
Blow, L., Lechene, V., & Levell, P. (2015). Using the CE to model household demand. In Carroll, C. D., Crossley, T. F., & Sabelhaus, J. eds., Improving the Measurement of Consumer Expenditures. Chicago and London: University of Chicago Press.
Blundell, R., & Robin, J. M. (1999). Estimation in large and disaggregated demand systems: an estimator for conditionally linear systems. Journal of Applied Econometrics, 14(3), 209–232.
Canelas, C., Gardes, F., Merrigan, P., & Salazar, S. (2019). Are time and money equally substitutable for all commodity groups in the household’s domestic production? Review of Economics of the Household, 17(1), 267–285.
Chang, D., & Serletis, A. (2014). The demand for gasoline: evidence from household survey data. Journal of Applied Econometrics, 29(2), 291–313.
Dauphin, A., Fortin, B., & Lacroix, G. (2018). Is consumption efficiency within households falsifiable? Review of Economics of the Household, 16(3), 737–766.
Deaton, A., & Muellbauer, J. (1980). An almost ideal demand system. The American Economic Review, 70(3), 312–326.
DellaVigna, S., & Malmendier, U. (2006). Paying not to go to the gym. The American Economic Review, 96(3), 694–719.
Ellison, G., & Ellison, S. F. (2009). Search, obfuscation, and price elasticities on the internet. Econometrica, 77(2), 427–452.
García, J., Pérez, L., & Rodríguez, P. (2008). Football pool sales: How important is a football club in the top division? International Journal of Sport Finance, 3(3), 167–176.
García, J., & Rodríguez, P. (2007). The demand for football pools in spain the role of price, prizes, and the composition of the coupon. Journal of Sports Economics, 8(4), 335–354.
Gebreegziabher, Z., Mekonnen, A., Kassie, M., & Köhlin, G. (2012). Urban energy transition and technology adoption: the case of Tigrai, northern Ethiopia. Energy Economics, 34(2), 410–418.
Heath, G. W., Parra, D. C., Sarmiento, O. L., Andersen, L. B., Owen, N., Goenka, S., Montes, F., Brownson, R. C., & Group, L. P. A. S. W., et al. (2012). Evidence-based intervention in physical activity: lessons from around the world. The Lancet, 380(9838), 272–281.
Hummels, D., & Lee, K. Y. (2018). The income elasticity of import demand: Micro evidence and an application. Journal of International Economics, 113, 20–34.
Humphreys, B. R., McLeod, L., & Ruseski, J. E. (2014). Physical activity and health outcomes: evidence from Canada. Health Economics, 23(1), 33–54.
Humphreys, B. R., & Perez, L. (2012). Who bets on sports? Characteristics of sports bettors and the consequences of expanding sports betting opportunities. Estudios de Economía Aplicada, 30(2), 579–597.
Humphreys, B. R., & Ruseski, J. E. (2011). An economic analysis of participation and time spent in physical activity. The BE Journal of Economic Analysis & Policy, 11(1), 1–47.
Koohi-Kamali, F. (2013). Estimation of equivalence scales under convertible rationing. Review of Income and Wealth, 59(1), 113–132.
Lakkakula, P., Schmitz, A., & Ripplinger, D. (2016). US sweetener demand analysis: a QUAIDS model application. Journal of Agricultural and Resource Economics, 41(3), 533–548.
Lecocq, S., & Robin, J.-M., et al. (2015). Estimating almost-ideal demand systems with endogenous regressors. Stata Journal, 15(2), 554–573.
Løyland, K., & Ringstad, V. (2009). On the price and income sensitivity of the demand for sports: has linder’s disease become more serious? Journal of Sports Economics, 10(6), 601–618.
Menon, M., Perali, F., & Piccoli, L. (2018). Collective consumption: an application to the passive drinking effect. Review of Economics of the Household, 16(1), 143–169.
Moshiri, S., & Aliyev, K. (2017). Rebound effect of efficiency improvement in passenger cars on gasoline consumption in Canada. Ecological Economics, 131, 330–341.
Pawlowski, T., & Breuer, C. (2012). Expenditure elasticities of the demand for leisure services. Applied Economics, 44(26), 3461–3477.
Poi, B. P. (2012). Easy demand-system estimation with quaids. Stata Journal, 12(3), 433–446.
Ray, R. (1983). Measuring the costs of children: an alternative approach. Journal of Public Economics, 22(1), 89–102.
Sarma, S., Devlin, R. A., Gilliland, J., Campbell, M. K., & Zaric, G. S. (2015). The effect of leisure-time physical activity on obesity, diabetes, high bp and heart disease among Canadians: evidence from 2000/01 to 2005/06. Health Economics, 24(12), 1–17.
Sarma, S., Zaric, G. S., Campbell, M. K., & Gilliland, J. (2014). The effect of physical activity on adult obesity: evidence from the Canadian NPHS panel. Economics and Human Biology, 14, 1–21.
Smith, N., Lewis, D., Fahy, A., Thompson, C., Clark, C., Stansfeld, S., Cummins, S., Taylor, S., Eldridge, S., & Greenhalgh, T., et al. (2014). Changes in physical activity in East London’s adolescents following the 2012 Olympic Games: findings from the prospective Olympic Regeneration in East London (ORiEL) cohort study. Journal of Epidemiology and Community Health, 68(Suppl 1), A23–A24.
Trost, S. G., Sallis, J. F., Pate, R. R., Freedson, P. S., Taylor, W. C., & Dowda, M. (2003). Evaluating a model of parental influence on youth physical activity. American Journal of Preventive Medicine, 25(4), 277–282.
Weed, M., Coren, E., Fiore, J., Wellard, I., Chatziefstathiou, D., Mansfield, L., & Dowse, S. (2015). The Olympic Games and raising sport participation: a systematic review of evidence and an interrogation of policy for a demonstration effect. European Sport Management Quarterly, 15(2), 195–226.
White, J. S., & Basu, S. (2016). Does the benefits schedule of cash assistance programs affect the purchase of temptation goods? Evidence from Peru. Journal of Health Economics, 46, 70–89.
Yoon, S., & Heo, S. (2017). The demand for cultural services in Korea using the QUAIDS model. International Journal of Business & Society, 18(1), 95–112.
This research was supported by funds to the Canadian Research Data Centre Network (CRDCN) from the Social Sciences and Humanities Research Council (SSHRC), the Canadian Institute for Health Research (CIHR), the Canadian Foundation for Innovation (CFI), and Statistics Canada. Although the research and analysis are based on data from Statistics Canada, the opinions expressed do not represent the views of Statistics Canada. We thank Irene Wong for her kind help in the University of Alberta Research Data Centre.
Conflict of interest
The authors declare that they have no conflict of interest.
Publisher’s note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
About this article
Cite this article
Humphreys, B.R., Ruseski, J.E. & Yang, J. Household consumption decisions: will expanding sports betting impact health?. Rev Econ Household 18, 1079–1100 (2020). https://doi.org/10.1007/s11150-019-09474-x