1. The Impact of the Great Recession on the Income Elasticity of the Lottery
Given the time constraint for your presentation, (i) don’t create too many (or too little) slides and (ii) don’t worry about discussing your paper in every detail. Hit the highlights in your presentation.
Craig Gallet

2. I. INTRODUCTION
Many studies have estimated the demand for the lottery, with an emphasis on the impact of per capita income on demand. However, in the wake of the Great Recession, little attention has been given to changes in the role of income over the business cycle. Accordingly, this paper seeks to fill this gap in the literature.
Utilizing panel data across 43 U.S. states, we find that increases in per capita income increase lottery demand. Indeed, results from double-log specifications reveal that the income elasticity falls within the inelastic range. Further, the income elasticity significantly changed in the wake of the Great Recession.
In the introduction, briefly motivate the topic. With respect to income and lottery demand, one could discuss increased lottery revenue in the presence of increased per capita income.

3. II. LITERATURE SUMMARY
Impact of Income on Lottery Demand: Tosun and Skidmore (2004) Perez and Humphreys (2011) Perez and Humphreys (2013) Economic Fluctuations and Risk Attitudes: Hurd and Rohwedder (2010) Malmendier and Nagel (2011) Other Determinants of Lottery Demand: Stover (1990) Garrett and Marsh (2002) Elliott and Navin (2002)
Briefly discuss the literature here. For instance, with respect to the impact of income on lottery demand, one could mention studies that estimate the income elasticity of the lottery. In addition, one could talk about changing risk preferences across the business cycle (to tie changes in the income elasticity to the Great Recession). One could then mention a few other papers addressing determinants of lottery demand. Only discuss a few papers, though, as you have a very limited amount of time to present your paper.

4. III. EMPIRICAL MODEL AND DATA
We estimate several specifications of lottery demand using state-level data for the period. Specifically:
Linear Specifications:
REV = β0 + β1INC + ε
REV = β0 + β1INC + β2P65 + β3P β4NOLOT + ε
REV = β0 + β1INC + β2P65 + β3P β4NOLOT + β5MIDWEST + β6EAST + β7SOUTH + ε
Double-Log Specifications:
LREV = β0 + β1LINC + β2LP65 + β3LP β4NOLOT + β5MIDWEST + β6EAST + β7SOUTH
+ ε
(Here you also put the specification for part F of Assignment 3)
Discuss the various specifications you estimate. Provide your expectations and logic of how each variable affects the dependent variable.

5. Table 1. Variable Names and Definitions
Variables
Definition
Dependent Variable:
REV
Independent Variables:
INC
P65
P2024
NOLOT
D2008
WEST
MIDWEST
EAST
SOUTH 
Real per capita lottery revenue (in dollars)
Real per capita disposable income (in thousands of dollars)
Percent of the population age 65 and older
Percent of the population age 20 to 24
= 1 if any state bordering each state doesn’t have a lottery, 0 if not 
= 1 for years , 0 for all prior years
= 1 if state is part of the West region of the U.S., 0 if not
= 1 if state is part of the Midwest region of the U.S., 0 if not
= 1 if state is part of the East region of the U.S., 0 if not
= 1 if state is part of the South region of the U.S., 0 if not 
Sources:
Data on REV came from the Statistical Abstract of the United States (
Data on INC came from the Bureau of Economic Analysis (
Data on P65 and P2024 came from CDC Wonder (
Region dummy variables, as well as D2008, were constructed by the author.
Provide the data sources and define the variables.

6. Table 2. Descriptive Statistics
Variables
Mean
Standard
Deviation
Minimum
Maximum
Dependent Variable:
REV
Independent Variables:
INC
P65
P2024
NOLOT
WEST
MIDWEST
EAST
SOUTH    W X Y Z
Briefly discuss some of the descriptive statistics. Perhaps states and/or years in which REV is highest/lowest, or states/years in which INC is highest/lowest. See the answer key to Assignment 1 for the values which go in this table.

7. Specification Exploration:
The variable of interest in our model is income. With this in mind, we explore how sensitive the results are to various specifications. We consider how the omission of other variables affects the impact of income on lottery revenue. We also consider the influence of functional form on the results. Below is a plot of REV against INC suggesting non-linearity (see the answer key to Assignment 3):
Your empirical model should explore the influence of specification choices. See the answer key to Assignment 3 regarding the plot of REV against INC.

8. IV. ESTIMATION RESULTS A. Linear Results
Table 3. Estimation Results for Linear Specifications
Variables
(1)
(2)
(3)
Constant   
INC
P65
P2024
NOLOT
MIDWEST
EAST
SOUTH    A
(B) 
(B)
# obs R2
Adj. R2 C D E
A. Linear Results
Note: Standard errors are in parentheses below coefficient estimates.
*** Significant at the 1% level. ** Significant at the 5% level. * Significant at the 10% level.
Discuss the estimation results in this slide and the next. See answer key to Assignments 1 and 3 for the numbers which should go in this table. Pay attention to the signs of the coefficients (as they relate to your expectations), significance of the coefficients, as well as measures of fit and any other tests performed (e.g., tests of multicollinearity, serial correlation and heteroskedasticity, as well as tests of the joint significance of various combinations of variables). Note there is a good chance your standard errors will need to be “robust”.

9. of Assignment 3 in this column
Table 4. Estimation Results for Double-Log Specifications
Variables
(1)
(2)
Constant   
LINC
LP65
LP2024
NOLOT
MIDWEST
EAST
SOUTH A
(B) 
(B)  A
Put
results
for part F
of Assignment 3 in this column
# obs R2
Adj. R2 C D E
B. Double-Log Results
Note: Standard errors are in parentheses below coefficient estimates.
*** Significant at the 1% level. ** Significant at the 5% level. * Significant at the 10% level.
See the answer key to Assignment 3 for the numbers which should go in this table.

10. V. CONCLUSION Summary of results Comparing results to the literature
Policy implications
Limitations and recommendations for further study
Summarize your results here. Perhaps mention how they compare to other studies. Further, discuss any policy implications, as well as limitations and recommendations for future study.