THE EFFECTS OF LOTTO GAME CHANGES AND LARGE JACKPOTS ON INCOME ELASTICITIES AND SALES.

Using daily lottery data from Washington State by zip code from January 2011 through mid‐March 2016, we estimate that Powerball income elasticities range from −0.16 to 0.16 as the Powerball jackpot increases from its minimum to $1.5 billion, while Mega Millions income elasticities range from −0.08 t...

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Publicado en:Contemporary Economic Policy Vol. 37; no. 2; pp. 261 - 274
Autores principales: Combs, Kathryn L., Spry, John A.
Formato: Artículo
Publicado: Wiley-Blackwell Apr2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE EFFECTS OF LOTTO GAME CHANGES AND LARGE JACKPOTS ON INCOME ELASTICITIES AND SALES.
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        au:
          Combs, Kathryn L.
          Spry, John A.
        affil:
          Professor, Department of Finance, University of St. Thomas, Minneapolis MN, 55403
          Associate Professor, Department of Finance, University of St. Thomas, Minneapolis MN, 55403
      su:
        Washington (State)
        Elasticity (Economics)
        Economic demand
        Data
        Business revenue
      sug:
        subj:
          Elasticity (Economics)
          Economic demand
          Washington (State)
          Data
          Business revenue
      ab: Using daily lottery data from Washington State by zip code from January 2011 through mid‐March 2016, we estimate that Powerball income elasticities range from −0.16 to 0.16 as the Powerball jackpot increases from its minimum to $1.5 billion, while Mega Millions income elasticities range from −0.08 to 0.03 as the Mega Millions jackpot increases from its minimum to $640 million. Controlling for jackpot size, each of three major game changes during this time period has a significant effect on own‐game and cross‐game sales. Despite these significant game changes, however, these lotto games are a highly regressive source of revenue for Washington State.
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