How exogenous is exogenous income? A longitudinal study of lottery winners in the UK
نویسنده
چکیده
This note investigates whether gains from lottery wins are strictly randomized across lottery winners. Using a unique longitudinal dataset of lottery winners in Britain, we offer new evidence that certain socio-economic characteristics strongly predict future winnings in the national lottery. This is the case even after controlling for individual fixed effects in the estimation. Researchers working with lottery dataset are thus advised to check, whenever they can, whether their outcome variables also strongly predict the amount of future lottery wins. JEL: C5; D1
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