We find that lottery tax windfalls finance higher state-government expenditures on supplemental security income that increase consumption, but only during bust periods. Wealth transfers from lottery winners to low income households enable fiscal policy to stabilize consumption during bust periods.
Da, Z., Warachka, M., & Yun, H. (2015). Lottery tax windfalls, state-level fiscal policy, and consumption. Economics Letters, 129, 9-12. https://doi.org/10.1016/j.econlet.2015.01.028