The effects of lottery prizes on winners and their neighbors: Evidence from the Dutch Postcode Lottery

Arbeitspapier

Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMW to 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 other durables. 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 to winners have significantly higher levels of car consumption than other nonparticipants.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4950

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
• Subject: Social interactions ; natural experiments ; Glücksspiel ; Nachbarschaftsökonomie ; Konsumentenverhalten ; Feldforschung ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kuhn, Peter ; Kooreman, Peter ; Soetevent, Adriaan R. ; Kapteyn, Arie
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36917
• Last update: 10.03.2025, 11:42 AM CET