The Ticket to Easy Street? The Financial Consequences of Winning the Lottery Academic Article

abstract

• Abstract-This paper examines whether giving large cash transfers to financially distressed people causes them to avoid bankruptcy. A comparison of Florida Lottery winners who randomly received $50,000 to $150,000 to small winners indicates that such transfers only postpone bankruptcy rather than prevent it, a result inconsistent with the negative shock model of bankruptcy. Furthermore, the large winners who subsequently filed for bankruptcy had similar net assets and unsecured debt as small winners. Thus, our findings suggest that skepticism regarding the long-term impact of cash transfers may be warranted. 2011 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

authors

• Hoekstra, Mark

published proceedings

• The Review of Economics and Statistics

altmetric score

• 778.862

author list (cited authors)

• Hankins, S., Hoekstra, M., & Skiba, P. M.

citation count

• 40

complete list of authors

• Hankins, Scott||Hoekstra, Mark||Skiba, Paige Marta

publication date

• August 2011

publisher

• MIT Press  Publisher

published in

• Review of Economics and Statistics  Journal

Digital Object Identifier (DOI)

• 10.1162/rest_a_00114

start page

• 961

end page

• 969

volume

• 93

issue

• 3

URL

• http%3A%2F%2Fdx.doi.org%2F10.1162%2Frest_a_00114