Abstract

http://ssrn.com/abstract=1707668
 
 

Citations (3)



 


 



Making Savers Winners: An Overview of Prize-Linked Saving Products


Melissa S. Kearney


University of Maryland - Department of Economics; National Bureau of Economic Research (NBER)

Peter Tufano


University of Oxford - Said Business School; National Bureau of Economic Research (NBER)

Jonathan Guryan


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Erik Hurst


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

November 11, 2010

Pension Research Council WP 2010-36

Abstract:     
For over three centuries and throughout the globe, people have enthusiastically bought savings products that incorporate lottery elements. In lieu of paying traditional interest to all investors proportional to their balances, these Prize Linked Savings (PLS) accounts distribute periodic sizeable payments to some investors using a lottery-like drawing where an investor’s chances of winning are proportional to one’s account balances. This paper describes these products, provides examples of their use, argues for their potential popularity in the United States - especially to low and moderate income non-savers - and discusses the laws and regulations in the United States that largely prohibit their issuance.

Number of Pages in PDF File: 35

Keywords: lottery, prize, saving, accounts, income, products, households, gambling, investment

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Date posted: November 13, 2010  

Suggested Citation

Kearney, Melissa S. and Tufano, Peter and Guryan, Jonathan and Hurst, Erik, Making Savers Winners: An Overview of Prize-Linked Saving Products (November 11, 2010). Pension Research Council WP 2010-36. Available at SSRN: http://ssrn.com/abstract=1707668 or http://dx.doi.org/10.2139/ssrn.1707668

Contact Information

Melissa S. Kearney (Contact Author)
University of Maryland - Department of Economics ( email )
College Park, MD 20742
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Peter Tufano
University of Oxford - Said Business School ( email )
Park End Street
Oxford, OX1 1HP
Great Britain
+44 (0) 1865 288551 (Phone)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jonathan Guryan
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Erik Hurst
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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