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

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  • Andrew Weinbach
  • Rodney Paul

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. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Andrew Weinbach & Rodney Paul, 2008. "Running the Numbers on Lotteries and the Poor: An Empirical Analysis of Transfer Payment Distribution and Subsequent Lottery Sales," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(3), pages 333-344, September.
    • Handle: RePEc:kap:atlecj:v:36:y:2008:i:3:p:333-344
    DOI: 10.1007/s11293-008-9138-6
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    References listed on IDEAS

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    Cited by:

    1. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: A Survey of the Literature," Working Papers 1109, College of the Holy Cross, Department of Economics.
    2. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    3. Luke Lunhua Mao & James J Zhang & Daniel P Connaughton, 2015. "Determinants of Demand for Sports Lottery: Insights from a Multilevel Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(8), pages 973-987, August.

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    More about this item

    Keywords

    Lottery; Transfer payments; Liquidity constraints; Permanent income hypothesis; D00; D12; D91; H50; H53; I00; I38;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I00 - Health, Education, and Welfare - - General - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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