This Website uses cookies. By using this website you are agreeing to our use of cookies and to the terms and conditions listed in our data protection policy. Read more

Review of Economic Studies

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

Journal Article
Lindqvist, Erik, Robert Östling and David Cesarini (2020). “Long–Run Effects of Lottery Wealth on Psychological Well–Being”. Review of Economic Studies 87(6), 2703–2726.

Erik Lindqvist, Robert Östling, David Cesarini

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.