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Unmet Liquidity Needs and the Spread of Sports Betting: Guest post by Sylvan Herskowitz

This is the tenth in our job market paper series this year.
In developing countries, the high costs of credit along with varied impediments to saving, make it challenging for people to raise large sums of liquidity needed for large and indivisible, or “lumpy,” expenditures.  An emerging body of evidence has shown how these constraints push people towards second-best strategies to address their financial needs (Collin et al. 2009 and Banerjee and Duflo 2007).  My job market paper, “Gambling, Saving, and Lumpy Expenditures: Sports Betting in Uganda”, looks at the behaviors of 1,715 bettors in Kampala, Uganda and provides evidence that unmet liquidity needs push people towards sports betting as an unexpected alternative method of liquidity generation.