Academy of Financial Services
The goal of this paper is to test to see whether what people would buy differs by windfall source. Basically, our hypothesis is that the more ‘adult’ the source of the windfall, such as a work bonus, tax refund and perhaps inheritance, the more one would spend on ‘responsible’ uses, like household expenses and durable goods, such as a car or washing machine. Alternatively, the more hedonistic sources, like lottery and game show winnings, would be spent on ‘fun’. An alternative measure explored would be ‘euphoria’. Are the more exciting or euphoric sources like game show, bonus or lottery, spent more for fun than the less exciting sources like a tax refund or inheritance?
Author(s): Eugene Bland, Valrie Chambers