How a Cash Windfall Affects Lottery Winners

The impact of cash transfers on lottery winners can be used to predict the efficacy of anti-poverty programs that give money to struggling households.

Fiscal Policy: Looking at the Lottery

The 14 million (or so) people who buy Powerball lottery tickets may be suffering from probability neglect. They know that their chance of winning $40 million could be 1 in 175 million. But still, they buy the tickets. Nobel prize winning…