Lottery tax windfalls, state-level fiscal policy, and consumption

Zhi Da, Mitch Warachka and Hayong Yun

Economics Letters, 2015, vol. 129, issue C, 9-12

Abstract: We find that lottery tax windfalls finance higher state-government expenditures on supplemental security income that increase consumption, but only during bust periods. Wealth transfers from lottery winners to low income households enable fiscal policy to stabilize consumption during bust periods.

Keywords: Lottery tax windfalls; Fiscal policy; Consumption (search for similar items in EconPapers)
JEL-codes: E2 E3 E6 H2 H3 H7 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:129:y:2015:i:c:p:9-12

DOI: 10.1016/j.econlet.2015.01.028

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