showSidebars ==
showTitleBreadcrumbs == 1
node.field_disable_title_breadcrumbs.value ==
SMU SOE Seminar (Aug 8, 2018): Consumption Responses to Income Shocks through Lottery Winning
|
TOPIC:
|
CONSUMPTION RESPONSES TO INCOME SHOCKS THROUGH LOTTERY WINNING
|
ABSTRACT
We study the effects of unearned income via lottery winning on consumption using newly available, nationally representative household survey day. We find that a $1 increase of lottery prize in the last 12 months raises monthly total consumption expenditure by $0.09. This consumption response is mainly driven by increases in non-durable spending. Our heterogeneity analyses provide further evidence on possible mechanisms of consumption responses to an income shock. The consumption responses to a $1 increase in lottery prize are larger among households that have stronger liquidity constraint, a shorter-term time horizon for financial planning, and greater risk aversion.
Keywords: Lottery, Consumption, Saving
JEL Codes: D12, D14
Click here to view the CV.
|
|
|
PRESENTER
Kanghyock Koh
Ulsan National Institute of Science
of Science and Technology
|
RESEARCH FIELDS
Health Economics
Labor Economics
|
DATE:
8 August 2018 (Wednesday)
|
TIME:
4pm - 5.30pm
|
VENUE:
Meeting Room 5.1, Level 5
School of Economics
Singapore Management University
90 Stamford Road
Singapore 178903
|
|
|
|