Sources: Instituto Nacional de Estadística (INE). This table shows the results for the first stage estimation, using the lottery income shock variables, win_region and lottery × win_region, as instruments for total household expenditures. The coefficients win_region, lottery and lottery × win_region, are as previously described in Table 4. We present the effect of the lottery income shock on total household expenditures in logarithms; we also did the estimations for total expenditures in levels, but the results were showing a negative impact of the lottery income shock on total expenditures, thus we avoid using expenditures in levels, as the estimates go against our expectations. Both specifications 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. t-statistics in parentheses: *p < 0.05, **p < 0.01 and ***p < 0.001. Full set of estimates available in Table A4 of the Appendix of this paper