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Habit and long memory in UK lottery sales

Author

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  • McHale, I.G.
  • Peel, D.A.

Abstract

Long memory processes can occur as a consequence of aggregation over heterogeneous agents. We examine the UK lottery and, by estimating the level of fractional differencing, find evidence of the long memory property in lottery sales, a result that has broader implications on the estimation of demand models for lotteries.

Suggested Citation

  • McHale, I.G. & Peel, D.A., 2010. "Habit and long memory in UK lottery sales," Economics Letters, Elsevier, vol. 109(1), pages 7-10, October.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:1:p:7-10
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    References listed on IDEAS

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    Cited by:

    1. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.

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