How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery

We show cash windfalls affect the real economy by spurring entrepreneurship. We identify these effects using the Spanish Christmas Lottery, which provides a unique setting as prizes are geographically concentrated and distributed among thousands of households. We find higher start-up entry, job crea...

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Detalles Bibliográficos
Autores: Bermejo, Vicente J., Ferreira, Miguel, Wolfenzon, Daniel, Zambrana, Rafael
Tipo de recurso: artículo
Fecha de publicación:2024
País:España
Institución:Universitat Ramon Llull (URL)
Repositorio:DAU Arxiu Digital de la Universitat Ramon Llull
OAI Identifier:oai:dau.url.edu:20.500.14342/4901
Acceso en línea:http://hdl.handle.net/20.500.14342/4901
http://doi.org/10.1017/S0022109024000371
Access Level:acceso abierto
Palabra clave:Lottery
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spelling How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas LotteryBermejo, Vicente J.Ferreira, MiguelWolfenzon, DanielZambrana, RafaelLotteryWe show cash windfalls affect the real economy by spurring entrepreneurship. We identify these effects using the Spanish Christmas Lottery, which provides a unique setting as prizes are geographically concentrated and distributed among thousands of households. We find higher start-up entry, job creation, and self-employment in winning regions. Consistent with a financial constraints channel, results are strongest in sectors relying on external finance and regions with limited credit access. Newly created firms are larger, more profitable, and survive longer. For existing firms, however, growth and profitability do not respond to lottery awards, but wages increase due to tighter labor markets.info:eu-repo/semantics/publishedVersionCambridge University PressUniversitat Ramon Llull. Esade202520252024info:eu-repo/semantics/article30 p.application/pdfhttp://hdl.handle.net/20.500.14342/4901http://doi.org/10.1017/S0022109024000371reponame:DAU Arxiu Digital de la Universitat Ramon Llullinstname:Universitat Ramon Llull (URL)InglésJournal of Financial and Quantitative Analysis© L'autor/aAttribution 4.0 Internationalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:dau.url.edu:20.500.14342/49012026-06-21T06:40:37Z
dc.title.none.fl_str_mv How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
title How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
spellingShingle How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
Bermejo, Vicente J.
Lottery
title_short How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
title_full How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
title_fullStr How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
title_full_unstemmed How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
title_sort How Do Cash Windfalls Affect Entrepreneurship? Evidence from the Spanish Christmas Lottery
dc.creator.none.fl_str_mv Bermejo, Vicente J.
Ferreira, Miguel
Wolfenzon, Daniel
Zambrana, Rafael
author Bermejo, Vicente J.
author_facet Bermejo, Vicente J.
Ferreira, Miguel
Wolfenzon, Daniel
Zambrana, Rafael
author_role author
author2 Ferreira, Miguel
Wolfenzon, Daniel
Zambrana, Rafael
author2_role author
author
author
dc.contributor.none.fl_str_mv Universitat Ramon Llull. Esade
dc.subject.none.fl_str_mv Lottery
topic Lottery
description We show cash windfalls affect the real economy by spurring entrepreneurship. We identify these effects using the Spanish Christmas Lottery, which provides a unique setting as prizes are geographically concentrated and distributed among thousands of households. We find higher start-up entry, job creation, and self-employment in winning regions. Consistent with a financial constraints channel, results are strongest in sectors relying on external finance and regions with limited credit access. Newly created firms are larger, more profitable, and survive longer. For existing firms, however, growth and profitability do not respond to lottery awards, but wages increase due to tighter labor markets.
publishDate 2024
dc.date.none.fl_str_mv 2024
2025
2025
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.14342/4901
http://doi.org/10.1017/S0022109024000371
url http://hdl.handle.net/20.500.14342/4901
http://doi.org/10.1017/S0022109024000371
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Journal of Financial and Quantitative Analysis
dc.rights.none.fl_str_mv © L'autor/a
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © L'autor/a
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 30 p.
application/pdf
dc.publisher.none.fl_str_mv Cambridge University Press
publisher.none.fl_str_mv Cambridge University Press
dc.source.none.fl_str_mv reponame:DAU Arxiu Digital de la Universitat Ramon Llull
instname:Universitat Ramon Llull (URL)
instname_str Universitat Ramon Llull (URL)
reponame_str DAU Arxiu Digital de la Universitat Ramon Llull
collection DAU Arxiu Digital de la Universitat Ramon Llull
repository.name.fl_str_mv
repository.mail.fl_str_mv
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