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

Research output: Contribution to journalArticle

2 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)333-344
Number of pages12
JournalAtlantic Economic Journal
Volume36
Issue number3
DOIs
StatePublished - Jul 16 2008
Externally publishedYes

Keywords

  • Liquidity constraints
  • Lottery
  • Permanent income hypothesis
  • Transfer payments

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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