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



Updated 20 May, 2022

TTP peace talks

ANOTHER attempt to sue for peace with the outlawed TTP is being made, again facilitated by the Afghan Taliban that...
20 May, 2022

Beyond the law

THE senior judiciary should take care not to overreach in its zeal to ‘fix’ issues it ideally need not worry...
20 May, 2022

Political musical chairs

YET another political crisis is brewing in Balochistan, where old rivals Jam Kamal Khan Alyani and Sardar Yar...
Updated 19 May, 2022

To be or not to be

The same decision taken weeks or months from now will have far more devastating consequences.
19 May, 2022

Impact on Punjab

THE Supreme Court judgement interpreting the issue of disqualification of parliamentarians under Article 63A of the...
19 May, 2022

Forest fires

THOUGH spot and forest fires have become a perennial phenomenon especially in peak summer, the recent blazes —...