%0 Report
        %A Kuhn, Peter J.
%A Kooreman, Peter
%A Soetevent, Adriaan R.
%A Kapteyn, Arie
        %T The Effects of Lottery Prizes on Winners and their Neighbors: Evidence from the Dutch Postcode Lottery
        %D 2010
        %8 2010 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4950
        %U https://www.iza.org/publications/dp4950
        %X Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMW to lottery participants in that code. We study the effects of these shocks on lottery winners and their neighbors. Consistent with the life-cycle hypothesis, the effects on winners’ consumption are largely confined to cars and other durables. Consistent with the theory of in-kind transfers, the vast majority of BMW winners liquidate their BMWs. We do, however, detect substantial social effects of lottery winnings: PCL nonparticipants who live next door to winners have significantly higher levels of car consumption than other nonparticipants.
        %K natural experiments
%K social interactions