In the Dutch Postcode Lottery a postal code (19 households on average) is randomly selected weekly, and prizes –consisting of cash and a new BMW-- are awarded to lottery participants living in that postal code. On average, this generates a temporary, unexpected income shock equal to about...

In the Dutch Postcode Lottery a postal code (19 households on average) is randomly selected weekly, and prizes Ðconsisting of cash and a new BMW-- are awarded to lottery participants living in that postal code. On average, this generates a temporary, unexpected income shock equal to about eight...