Each week, the Dutch Postcode Lottery (PCL) randomly selects a postal code, and distributes cash and a new BMWto 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’...

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 eight...

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'...

This paper discusses some issues in the empirical implementation of game theoretic models of household labor supply. In particular we focus on the identification problems inherent in many of these models. As an illustration, we estimate a game theoretic model which uses data on preferred working...

This paper discusses an investigation of the effects of systematic underreporting of income and of sample selectivity on the estimated levels of two subjective definitions of poverty: the so-called subjective poverty line and the Leyden poverty line. Both turn out to have substantially biasing...