The Own and Social Effects of an Unexpected Income Shock
Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMWto lottery participants in that code. We study the effects of these shocks on lottery winners and their neighbors.Consistent with the life-cycle hypothesis, the effects on winners’ consumption are largely confined to cars and otherdurables. Consistent with the theory of in-kind transfers, the vast majority of BMW winners liquidate their BMWs.We do, however, detect substantial social effects of lottery winnings: PCL nonparticipants who live next door towinners have significantly higher... Mehr ...
| Verfasser: | |
|---|---|
| Dokumenttyp: | doc-type:workingPaper |
| Erscheinungsdatum: | 2008 |
| Verlag/Hrsg.: |
Amsterdam and Rotterdam: Tinbergen Institute
|
| Schlagwörter: | ddc:330 / D12 / C21 / social interactions / natural experiments / Glücksspiel / Wertzuwachssteuer / Schock / Konsumentenverhalten / Zufriedenheit / Wohnstandort / Niederlande |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-29231868 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | http://hdl.handle.net/10419/86681 |
Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMWto lottery participants in that code. We study the effects of these shocks on lottery winners and their neighbors.Consistent with the life-cycle hypothesis, the effects on winners’ consumption are largely confined to cars and otherdurables. Consistent with the theory of in-kind transfers, the vast majority of BMW winners liquidate their BMWs.We do, however, detect substantial social effects of lottery winnings: PCL nonparticipants who live next door towinners have significantly higher levels of car consumption than other nonparticipants.