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

Article

Abstract

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.

Keywords

Lottery Transfer payments Liquidity constraints Permanent income hypothesis 

JEL

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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