It has happened a couple of times: people win a big lottery prize, while their neighbors have nothing. Participation in a lottery has made all the differences. We hope this will never happen to you. American researchers from Georgetown University thought it was an interesting subject. They asked themselves: do people spend more if someone in their surroundings become rich?
American and Canadian research
The researchers from Georgetown worked together with the Federal Reserve Bank of Philadelphia and the Canadian University of Alberta. They recently published some shocking results. It appears that if someone you know becomes rich, for example the neighbors, you’re more likely to speculate or rent money. What’s more: you probably even spent more money than usual!
Big Jackpot for others means financial trouble
It can be quite painful for some people that a neighbor wins a big car because he or she has participated in the lottery. Especially if those people were only able to buy the car because they had the winning lottery ticket. It happened to a couple of Canadians who were followed by the American and Canadian researchers for a while. The researchers looked into the lottery winners and their direct neighbors. Interestingly enough, it appears that how bigger the Jackpot, how more likely that neighbors will experience financial trouble.
There is a catch…
The research gives food for some thought, but there is a catch. The researchers did not look into very large Lottery winners because those winners usually move to places where they don’t have neighbors. Makes sense, because who doesn’t want to have a freestanding villa? So the researchers only paid attention to people who have won between 1500 and 150.000 Canadian dollars. The research took an entire decade. Between 2004 and 2014 7337 winners were followed.
How big is the chance to go bankrupt?
Eventually the researchers concluded that people with an average income of 29.000 Canadian dollars have a chance of 6.6 to go bankrupt. Quite a lot. So if your neigbors are lucky enough to win a big prize and you’re not, be careful!