Is Lottery Gambling Addictive?

Jonathan Guryan and Melissa Kearney

American Economic Journal: Economic Policy, 2010, vol. 2, issue 3, 90-110

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. (JEL D12, H27, H71)

JEL-codes: D12 H27 H71 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/pol.2.3.90
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Citations: View citations in EconPapers (13)

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Working Paper: Is Lottery Gambling Addictive? (2009)
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