John Eakins

Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland

This paper presents a dynamic form of the Almost Ideal Demand System (AIDS). Three versions of the static AIDS model are employed to determine the preferred long-run equilibrium model and represents the short-run dynamics by an error correction mechanism. This estimation procedure is then applied to alcohol expenditure in Ireland. The estimated point elasticities are consistent with previous studies and a priori expectations. Beer and spirits are found to be price inelastic in both the short and long run. While wine is price inelastic in the short run and price elastic in the long run.

An examination of the determinants of Irish household sports expenditures and the effects of the economic recession

ABSTRACT Research question: This study examines the determinants of four household sport expenditure items. The primary objective is to examine the effects of the recent economic recession in Ireland on these expenditures. This study is the first to analyse Irish household sport expenditure data and the first to study the effects of the economic recession on these items. Research methods: Data from the 2004/2005 and 2009/2010 Irish Household Budget Surveys, a period which covers the economic recession in Ireland, are employed. A Tobit model is estimated as each of the four sports expenditures has a large amount of zero expenditures. Results and findings: The social and economic characteristics of Irish households affect each sports item in differing ways. The presence of children of a particular age appears to be a strong determinant of spending on categories of sports which involve more physical activity (sport participation and leisure fees). Other categories of sports are influenced more by income (attendance at sporting events) and age and social status (club subscriptions). For some categories of sport spending there is a strong link with how the economy is performing, whereas for others household characteristics play just as important a role. Implications: This research has shown that sport is a multi-faceted product. Its determinants and how it is affected by economic downturns depends on the type of expenditure examined. For spending on certain categories the recession has had a clear negative effect, whereas for others it has been neutral. These are important considerations for sports managers and policy-makers when devising their strategies.

Household gambling expenditures and the Irish recession

Abstract This article examines the determinants of household gambling expenditures in Ireland and the effects of the recession on these expenditures using a large micro data-set, the Irish Household Budget Survey (HBS). Two gambling expenditures are examined, bookmaker tote betting and spending on the national lottery. Households with an older and a less educated head of household participate in and spend more on both forms of gambling while the presence of children in the households tends to reduce participation and spending in gambling. There is also evidence to suggest that households with an unemployed head of household have a higher likelihood of participation in gambling. The recession has affected the two forms of gambling in different ways. Lottery expenditures appear resilient to the effects of the recession. This is demonstrated in the estimated expenditure elasticities in particular. Bookmaker/tote expenditures have changed from a necessity to a luxury good, while lottery expenditures have increased in their necessity status. This can be explained by the fact that playing the lottery requires less time, knowledge and risk and has potentially greater benefits attached to it in comparison to bookmaker/tote betting. During a recession these factors become much more prevalent.

An analysis of the determinants of sports participation and time spent in different sporting contexts

ABSTRACT Using data from a survey of Irish adults, this study analyses sport participation from the perspective of four different sporting contexts, organised training, organised competition, participating with friends and family and individual activities. The results reinforce the belief that different profiles of sports participants exist. Volunteers, club members and spectators at events are all more likely to be involved in organised sporting activities. City dwellers, highly educated individuals and individuals with disabilities are more likely to spend time in a sporting activity on their own. Gender and lifecycle variables are also important in determining the type of sport activity an individual undertakes. Income, whilst being a barrier to overall sport participation, does not surprisingly influence the choice of sporting context. A clear implication is that the funding and development of policies toward increased sports participation rates need to be designed in such a way to appeal to different sporting preferences.

The determinants and income elasticities of direct and indirect sports expenditure categories.

ABSTRACT Research question: The current study investigates the income elasticities and socio-economic determinants of direct and indirect sports expenditure categories by means of a log normal hurdle regression. Research methods: The data stem from a representative sample of 3005 Flemish families with school-aged children, gathered through a sports-specific survey. A log normal hurdle regression was used to calculate the determining factors and expenditure elasticities of expenditure on sports participation. Results and findings: The results indicate that income, education and the age of the youngest child are positively related to almost all sports expenditure categories, while the number of family members and degree of urbanisation are significant for only a number of the expenditure categories. The elasticity value of the direct sports expenses is smaller than is the case for indirect sports expenditure. Between the expenditure categories large differences exist, as relatively large elasticities are found for sports holidays, transport and sports food and drinks, as opposed to low values of sports events, sports club membership, entrance fees for sports infrastructure, sports camps, clothing, footwear and equipment. Implications: The fact that income significantly influences all expenditure categories demonstrates that further policy intervention is required to make sports consumption more accessible to lower income groups. Sports enterprises and policy-makers need to be aware that negative income shifts have a more profound impact on the indirect expenditure categories, and that certain sports activities (e.g. participation events) are relatively more favoured by low-income groups than is the case for sports club membership.