We present an empirical test for the addictiveness of lottery gambling. To distinguish state dependence from serial … correlation, we exploit an exogenous shock to local market consumption of lottery gambling. We use the sale of a winning ticket in … a causal relationship between present and future consumption. This test of addiction is based on the definition of …

, consumers are persistent in their habit of buying lottery tickets at the "lucky" store; however, as the shock to total gambling … dissipates, there is no evidence that lottery gambling itself is habit forming or addictive …

We present an empirical test for the addictiveness of lottery gambling. To distinguish state dependence from serial … correlation, we exploit an exogenous shock to local market consumption of lottery gambling. We use the sale of a winning ticket in … a causal relationship between present and future consumption. This test of addiction is based on the definition of …

, consumers are persistent in their habit of buying lottery tickets at the "lucky" store; however, as the shock to total gambling … dissipates, there is no evidence that lottery gambling itself is habit forming or addictive …