Abstract
We present an empirical test for the addictiveness of lottery gambling that exploits an exogenous shock to local market consumption of lottery gambling. It uses the sale of a winning jackpot ticket in a zip code as an instrument for present consumption and tests for a causal relationship between present and future consumption. This test estimates the time path of persistence nonparametrically. Data from the Texas State Lottery suggests that after 6 months, roughly half of the initial increase in lottery consumption is maintained. After 18 months, roughly 40 percent of the initial shock persists, though estimates become less precise.
Original language | English (US) |
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Pages (from-to) | 90-110 |
Number of pages | 21 |
Journal | American Economic Journal: Economic Policy |
Volume | 2 |
Issue number | 3 |
DOIs | |
State | Published - 2010 |
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
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Replication data for: Is Lottery Gambling Addictive?
Guryan, J. (Creator) & Kearney, M. S. (Creator), ICPSR - Interuniversity Consortium for Political and Social Research, 2010
DOI: 10.3886/e114744v1-128440, https://www.openicpsr.org/openicpsr/project/114744/version/V1/view?path=/openicpsr/114744/fcr:versions/V1/AEJPol-20090004-replication/tx-analysis-games.dta&type=file
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