A policy-oriented framework for social cost analysis of gambling: Evidence from the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26482789%3A_____%2F24%3A10152713" target="_blank" >RIV/26482789:_____/24:10152713 - isvavai.cz</a>

Alternative codes found

RIV/44555601:13510/24:43898628

Result on the web

<a href="https://dspace.tul.cz/server/api/core/bitstreams/c9e7ac93-cdba-4efa-935b-fc4525afbe55/content" target="_blank" >https://dspace.tul.cz/server/api/core/bitstreams/c9e7ac93-cdba-4efa-935b-fc4525afbe55/content</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2024-5-019" target="_blank" >10.15240/tul/001/2024-5-019</a>

Result language

angličtina

Original language name

A policy-oriented framework for social cost analysis of gambling: Evidence from the Czech Republic

Original language description

This paper introduces a new framework for calculating the social costs of gambling, distinguishing between private costs, externalities, and public expenditures. By focusing only on externalities and public expenditures, which are relevant to policy-making, this approach aligns with economic theory and allows for a more targeted political response. The practical application of this framework is demonstrated by calculating the social cost of gambling in the Czech Republic in 2022 using the best available data. Our findings estimate private costs to be between CZK 91.1-102.3 billion (Lie/bet scale) or CZK 89.3-105.0 billion (PGSI scale), externalities between CZK 2.6-4.8 billion or CZK 2.2-5.3 billion, and public expenditures between CZK 5.6-8.0 billion or CZK 9.6-12.1 billion (exchange rate 1 EUR = 24.48 CZK). However, quality of the calculation is heavily dependent on the quality of data and in our case serves as a practical application of the new framework. Private costs thus make the most of the total costs, but the externalities and the public expenditures are not negligible. The framework&apos;s novel approach addresses long-standing flaws in the traditional calculations of gambling&apos;s social costs. It proposes a division of total impacts into three distinct categories, allowing for a methodological unification and introducing rationality to political decision-making concerning gambling. By isolating externalities, private and public expenditures, this paper pioneers a pragmatic economic approach to policy intervention aimed at mitigating the social harm of gambling not reflected in its market price. Future research should incorporate this framework into regulatory impact assessments for gambling policies, which could significantly improve their quality. The study&apos;s main limitation is the lack of Czech-specific and overall better-fitted data, especially on the psychological effects of gambling. Future research should improve data collection and consider not only the costs but also benefits of gambling to help to produce more comprehensive policy assessments.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

E &amp; M Ekonomie a Management

ISSN

1212-3609

e-ISSN

2336-5064

Volume of the periodical

27

Issue of the periodical within the volume

4

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

19

Pages from-to

54-72

UT code for WoS article

001381214800001

EID of the result in the Scopus database

2-s2.0-85211985264