Long-Run Effects of Lottery Wealth on Psychological Well-Being

Erik Lindqvist, Robert Östling, David Cesarini

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We surveyed a large sample of Swedish lottery players about their psychological well-being 5-22 years after a major lottery event and analysed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life satisfaction that persist for over a decade and show no evidence of dissipating over time. The estimated treatment effects on happiness and mental health are significantly smaller. Follow-up analyses of domain-specific aspects of life satisfaction implicate financial life satisfaction as an important mediator for the long-run increase in overall life satisfaction.

    Original languageEnglish (US)
    Pages (from-to)2703-2726
    Number of pages24
    JournalReview of Economic Studies
    Volume87
    Issue number6
    DOIs
    StatePublished - Nov 1 2020

    Keywords

    • C31
    • Happiness
    • I31
    • I39
    • lottery
    • mental health
    • well-being

    ASJC Scopus subject areas

    • Economics and Econometrics

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