Power Markets: Transferring Systematic Risk to Lottery Players
James D. Miller
Smith College - Department of Economics
Matthew R. Morey
Pace University - Lubin School of Business - Department of Finance and Economics
Public Budgeting & Finance, Vol. 23, pp. 118-133, June 2003
This article shows how a state could design a lottery that absorbs some of the financial market's systematic risk. Under this lottery, prizes would be positively correlated with the stock market. This lottery could be a profitable complement to existing state lotteries.
Number of Pages in PDF File: 16Accepted Paper Series
Date posted: September 17, 2003
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