Table 4.

Household consumption expenditures

(1)(2)(3)(4)(5)(6)(7)(8)
Panel AFood at homeAlcoholClothesHouse rentHouse investmentsHealthCar valueTransport
         
Win_region−0.148*** (−14.92)0.0398 (1.84)−0.0367 (−1.88)−0.168*** (−15.60)−0.166*** (−11.99)0.0448* (2.05)0.253*** (13.66)−0.0316 (−1.81)
Lottery0.165*** (27.75)1.052*** (80.55)0.842*** (71.66)0.0610*** (9.40)0.303*** (36.32)1.194*** (90.63)1.449*** (129.78)0.702*** (66.75)
Lottery × win_region0.0900*** (6.88)−0.341*** (−11.90)−0.206*** (−7.98)0.0333* (2.34)0.000498 (0.03)−0.332*** (−11.48)−0.460*** (−18.74)−0.159*** (−6.90)
_cons8.476*** (16.06)10.03*** (8.67)4.043*** (3.88)10.80*** (18.78)11.90*** (16.12)1.982(1.70)1.711 (1.73)6.927*** (7.44)
 F-test31.26178.29142.62144.28131.88159.10144.01110.38
 p-value0.00000.00000.00000.00000.00000.00000.00000.0000
N211,096211,096211,096211,096211,096211,096211,096211,096
R-squared0.8310.5180.6120.8740.8020.5070.2120.693
Panel B(9)(10)(11)(12)(13)(14)(15)(16)
 CommunicationLeisureEducationFood out homeHolidaysSavingsDurablesNondurables
Win_region−0.172*** (−12.51)−0.116*** (−6.16)0.0903*** (3.45)−0.0652*** (−3.61)0.102*** (4.47)0.174*** (7.68)−0.201*** (−15.62)−0.164*** (−13.95)
Lottery−1.006*** (23.22)0.164*** (83.49)0.742*** (109.84)0.291*** (74.72)0.906*** (98.07)0.856*** (73.22)−0.486*** (49.70)−0.275*** (54.87)
Lottery × win_region−0.0114 (−0.63)−0.129*** (−5.18)−0.438*** (−12.64)−0.209*** (−8.74)−0.355*** (−11.77)−0.359*** (−11.99)0.0487** (2.87)0.0445** (2.87)
_cons6.625*** (9.03)3.009** (3.00)2.440*** (6.15)−1.738(−1.80)−10.16*** (−8.35)32.24*** (26.73)12.54*** (18.31)10.81*** (17.28)
 F-test164.27156.11164.14212.50113.6261.82129.0395.19
 p-value0.00000.00000.00000.00000.00000.00000.00000.0000
N211,096211,096211,096211,096211,096211,096211,096211,096
R-squared0.8140.6330.3080.6750.3470.3910.8670.855

Notes:

The F-test performs a joint significant test of the lottery income shock variables (win_region and lottery × win_region), which later will be used as instrumental variables for total expenditures, on household consumption expenditures. The null hypothesis of the F-test is that living in the winning region of the Spanish Christmas Lottery has no effect on household consumption behavior. In other words, this test is testing the validity of the PIH

Sources:Instituto Nacional de Estadística (INE). Our dependent variables are the logarithm of consumption expenditures of each good category. The win_region coefficient reports the effect that living in a Spanish Christmas lottery winning region has on household consumption expenditures for the different types of goods. Lottery estimates how the fact of participating (or not) in the Spanish Christmas lottery affects household consumption behavior. Finally, Lottery × win_region, is the interaction term between the previous two variables. This coefficient captures the effect of a household that lives in a Christmas lottery-winning region and participates in it on household consumption expenditures, in comparison with households that either live in other regions or have not participated in the lottery, or both. In this specification, we also include as control variables the age of the head of the household and its square, the marital status of the head of the household and his/her educational level, employment status and whether he/she is retired or not. Moreover, we also include the logarithm of lottery expenditures per region and the regional log-GDP as demographic controls and both regional and year fixed-effects. We compute robust standard errors, clustered at the region level. t-statistics in parentheses: *p < 0.05, **p < 0.01 and ***p < 0.001. A full set of estimates is available upon request

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