We study the impact of realized equity premium and stock market volatility on aggregate gamblingexpenditures. We expect the wealth effect of higher realized returns will increase gambling (enter-tainment good), but also attract gamblers to equity markets, lowering aggregate wagers. Similarly,we...

We examine the impact of stock market wealth and business cycles on gambling. Rising stock market wealth is expected to increase expenditures on entertainment goods, including gambling. Conversely, rising volatility is expected to draw betting outlays to the stock markets. Gambling is also...