When US lottery jackpot winners of Powerball and Mega Millions deposit their winnings, those banks experience a large increase in deposits and total lending, according to a study by Carlos Parra at the University of Texas. The jackpot winners’ deposits lead to a significant increase in bank deposits (4.05pc yearly change) and an increase in small business lending in the area (4.28pc yearly change). Because their deposits lead to greater total lending to small businesses but not an increase in the probability of a business receiving lending, one interpretation of the findings is that on average the increase in lending is to current clients and not new clients, the author writes.

(Source: University of Texas)

Published in Dawn, Business & Finance weekly, February 1st, 2016

Opinion

Viral violence
Updated 25 Feb 2021

Viral violence

How many more brutal videos must be uploaded for us to put an end to torture?
The political chessboard
Updated 24 Feb 2021

The political chessboard

It is now hard for the PTI to defend itself from the opposition’s onslaught.

Editorial

IHK & human rights
Updated 25 Feb 2021

IHK & human rights

If India continues to be pampered and the Kashmiris’ plight ignored, peace in South Asia will remain a distant dream.
25 Feb 2021

A better law

THAT the Sindh Police has taken an initiative to bring improvements to the criminal justice system is a positive...
25 Feb 2021

Power breakdown report

A NEPRA inquiry into last month’s power breakdown that left almost the entire country without electricity for up ...
Return of militancy
Updated 24 Feb 2021

Return of militancy

Extremism is a hydra-headed monster that needs a sustained, multifaceted approach to vanquish.
24 Feb 2021

FDI decrease

THE more permanent and non-debt-creating FDI inflows to Pakistan have shrunk by a whopping 27pc to a meagre $1.1bn ...
24 Feb 2021

Myanmar protests

THE protests against Myanmar’s Feb 1 military coup have refused to die down, with hundreds of thousands of people...