Banking on Gambling: Banks and Lottery-Linked Deposit Accounts

@article{Guilln2002BankingOG,
  title={Banking on Gambling: Banks and Lottery-Linked Deposit Accounts},
  author={Mauro F. Guill{\'e}n and Adrian E. Tschoegl},
  journal={Journal of Financial Services Research},
  year={2002},
  volume={21},
  pages={219-231}
}
Deposit accounts that provide an interest return determined by a lottery have proved to be popular around the world. From the point of view of a bank, these products are especially successful among relatively low-income customers, or in markets in which many people are outside the banking system. Below, we describe numerous examples of such accounts, and analyze their economics. 
WHICH OPTIMAL DESIGN FOR LLDA
Lottery-linked deposit accounts are financial assets that provide an interest rate determined by a lottery. The aim of this study is to determine the optimal design of these financial assets (under
Which Optimal Design For LLDAs
Lottery-linked deposit accounts are financial assets that provide an interest rate determined by a lottery. The aim of this study is to determine the optimal design of these financial assets (under
Which optimal design for lottery linked deposit
Lottery-linked deposit accounts (LLDAs) are financial assets that provide an interest rate determined by a lottery. These accounts that combine savings and lot- tery have become very popular in
Which Optimal Design for Lottery Linked Deposit Accounts (Lldas)?
Lottery-linked deposit accounts (LLDAs) are financial assets that provide an interest rate determined by a lottery. These accounts that combine savings and lottery have become very popular in recent
Losers distribution, with applications to financial inclusion
In this paper I develop the new “Losers Distribution” and use it to build a financial instrument which partially solves the problem of financial exclusion. I design compensated lotteries that can
More lottery tickets than milk and no money in the bank
A significant proportion of US households have insufficient savings to cope with even moderate consumption shocks that can result in substantial externalities. At the same time, the most financially
Trading as Gambling
This paper offers evidence from two very different settings consistent with individual investors substituting between playing the lottery and playing the stock market. In the U.S., increases in the
Can Gambling Increase Savings? Empirical Evidence on Prize-Linked Savings Accounts
This paper studies the adoption and impact of prize-linked savings (PLS) accounts, which offer random, lottery-like payouts to individual account holders in lieu of interest. Using micro-level data
Saving whilst Gambling: An Empirical Analysis of UK Premium Bonds
For over three centuries and across the globe, lottery-linked savings (LLS) programs have offered individuals the opportunity to save, and in lieu of paying traditional interest, have given savers
Trading as Gambling
TLDR
Evidence from three different samples consistent with investors substituting between playing the lottery and gambling in financial markets is offered, showing the negative relation between trading activity and jackpots is stronger for individuals who are more likely to play the lottery.
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 34 REFERENCES
The Valuation of Nonsystematic Risks and the Pricing of Swedish Lottery Bonds
Swedish government lottery bonds have coupon payments determined by lottery. They offer a unique opportunity to study a security with uncertain payoffs having a known, observable distribution. The
Islamic Banks and Investment Financing
Islamic Law prohibits charging interest. We study financial instruments used by Islamic banks and find that most are not based on profit-and-loss sharing (equity) but, instead, are very debt-like in
The Financial Market and Government Debt Policy in France, 1746–1793
This article offers a new quantitative history of the market for government debt in France before the Revolution. The monarchy was a persistent default risk because of institutional obstacles to
The Demand for Lotto: The Role of Conscious Selection
This article presents estimates of the elasticity of demand for lottery tickets using time series data in which there is variation in the expected value of a lottery ticket induced by rollovers. An
The economic analysis of lotteries
"This paper considers policy issues arising in the design, regulation and taxation of lotteries, focusing on the market for an on-line lottery game. Demand determines who buys lottery tickets and in
The Evolution of Attitudes to Risk: Lottery Tickets and Relative Wealth
Abstract Individual attitudes to risk are examined in an evolutionary model. Males obtain more offspring as a consequence of greater wealth both directly and because this attracts more mates. The
Why do People Buy Lottery Tickets? Choices Involving Risk and the Indivisibility of Expenditure
UNDER the assumptions that, first, the pleasures of gambling may be neglected and, second, the marginal utility of income is diminishing, it can easily be shown that fair gambling is an economic
The Economics of Casino Gambling
America's casino industry expanded rapidly in the 1990s, spreading from Nevada and Atlantic City to mining towns, riverboats, race tracks and tribal lands, and moving from isolated resort settings to
The ethics of lottery advertising: Issues and evidence
After a discussion of the evolution and criticisms of state run lotteries, this article examines the ethics of lottery advertising. A discussion of the appeals used by lottery advertisers is followed
...
1
2
3
4
...