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Nonlinear Effect of Business Cycle on Lottery Sales Stability

Author

Listed:
  • Po-Chin Wu
  • Hsiao
  • I-Chung
  • Tsai
  • Meng-Hua

Abstract

This paper constructs a panel smooth transition autoregression model to evaluate the impact of the U. S. business cycle on the stability of lottery sales. We find that the impact is nonlinear and time-varying, depending on the level of the leading indicator. The persistence of lottery sales locates between 0.7779 and 0.8539, implying that current lottery sales are influenced by about 15%-23% of current disturbance, and the stability of the lottery sales is relatively high. An increase in the leading indicator would lead to a higher persistence of lottery sales and then more stable lottery sales in the next period. JEL classification numbers: C23, L83, E32Keywords: Sales persistence, stability of lottery sales, panel smooth transition autoregression (PSTAR) model, lagged leading indicator

Suggested Citation

  • Po-Chin Wu & Hsiao & I-Chung & Tsai & Meng-Hua, 2018. "Nonlinear Effect of Business Cycle on Lottery Sales Stability," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 8(4), pages 1-3.
    • Handle: RePEc:spt:admaec:v:8:y:2018:i:4:f:8_4_3
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    References listed on IDEAS

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    More about this item

    Keywords

    sales persistence; stability of lottery sales; panel smooth transition autoregression (pstar) model; lagged leading indicator;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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