Atlantic Economic Journal

, Volume 36, Issue 3, pp 333–344 | Cite as

Running the Numbers on Lotteries and the Poor: An Empirical Analysis of Transfer Payment Distribution and Subsequent Lottery Sales

  • Andrew P. Weinbach
  • Rodney J. Paul


State lottery revenues are shown to increase during the week transfer payments are distributed. The timing of the increase in lottery purchases suggests a portion of the transfer payments is used to purchase lottery tickets. In addition to providing information on the timing of lottery purchases, this study finds sales of Pick 3 and Pick 4 tickets increase during the period, while sales of Pick 5 and Pick 6 games do not, suggesting a general preference for the relatively higher probability, smaller jackpot games for the group.


Lottery Transfer payments Liquidity constraints Permanent income hypothesis 


D00 D12 D91 H50 H53 I00 I38 


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Copyright information

© International Atlantic Economic Society 2008

Authors and Affiliations

  1. 1.E. Craig Wall College of Business AdministrationCoastal Carolina UniversityConwayUSA
  2. 2.School of BusinessSaint Bonaventure UniversitySaint BonaventureUSA

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