State lottery revenue: the importance of game characteristics

Previous studies find state lottery sales are significantly influenced by socioeconomic characteristics of the population. We extend this literature by examining how the overall expected value, the top prize, and the total combinations influence sales after controlling for these other socioeconomic factors. We perform our empirical analysis on an unparalleled set of data that includes information for 135 on-line lottery games in the United States. Our results show that sales are significantly influenced the top prize amount and odds of winning it, but that sales are not significantly affected by the expected value of the remaining lower prizes.Gambling industry

Rethinking the Discount Factor in Reinforcement Learning: A Decision Theoretic Approach

Reinforcement learning (RL) agents have traditionally been tasked with maximizing the value function of a Markov decision process (MDP), either in continuous settings, with fixed discount factor $\gamma < 1$, or in episodic settings, with $\gamma = 1$. While this has proven effective for specific tasks with well-defined objectives (e.g., games), it has never been established that fixed discounting is suitable for general purpose use (e.g., as a model of human preferences). This paper characterizes rationality in sequential decision making using a set of seven axioms and arrives at a form of discounting that generalizes traditional fixed discounting. In particular, our framework admits a state-action dependent "discount" factor that is not constrained to be less than 1, so long as there is eventual long run discounting. Although this broadens the range of possible preference structures in continuous settings, we show that there exists a unique "optimizing MDP" with fixed $\gamma < 1$ whose optimal value function matches the true utility of the optimal policy, and we quantify the difference between value and utility for suboptimal policies. Our work can be seen as providing a normative justification for (a slight generalization of) Martha White's RL task formalism (2017) and other recent departures from the traditional RL, and is relevant to task specification in RL, inverse RL and preference-based RL.Comment: 8 pages + 1 page supplement. In proceedings of AAAI 2019. Slides, poster and bibtex available at https://silviupitis.com/#rethinking-the-discount-factor-in-reinforcement-learning-a-decision-theoretic-approac

Consumption Externalities and Economic Welfare

The distinction between technological and pecuniary externalities, usually made in production, can also be applied to consumption. Technological externalities create resource misallocations while pecuniary externalities do not. Taking a household production approach to consumption, this paper shows that many cases in which there are external effects on people's utility functions are pecuniary externalities, and public policy should ignore them. The economic literature has been inconsistent in its treatment of pecuniary consumption externalities, and this paper provides a framework for analysis in cases where the actions of some people affect the utility of others.Consumption; Economic Welfare; Externalities; Welfare

Interview : Russell Sobel

Economists

Economic freedom and employment growth in U.S. states

The authors extend earlier models of economic growth and development by exploring the effect of economic freedom on U.S. state employment growth. They find that states with greater economic freedom—defined as the protection of private property and private markets operating with minimal government interference—experienced greater rates of employment growth. In addition, they find that less-restrictive state and national government labor market policies have the greatest impact on employment growth in U.S. states. Beyond labor market policies, state employment growth is influenced by state and local government policies, but not the policies of all levels of government, including the national government. Their results suggest that policymakers concerned with employment should seriously consider the degree to which their own labor market policies and those of the national government may be limiting economic growth and development in their respective states.Economic development ; Employment

Entrepreneurship

Economic development ; Small business

Smoke gets in your eyes:what is sociological about cigarettes?

Contemporary public health approaches increasingly draw attention to the unequal social distribution of cigarette smoking. In contrast, critical accounts emphasize the importance of smokers’ situated agency, the relevance of embodiment and how public health measures against smoking potentially play upon and exacerbate social divisions and inequality. Nevertheless, if the social context of cigarettes is worthy of such attention, and sociology lays a distinct claim to understanding the social, we need to articulate a distinct, positive and systematic claim for smoking as an object of sociological enquiry. This article attempts to address this by situating smoking across three main dimensions of sociological thinking: history and social change; individual agency and experience; and social structures and power. It locates the emergence and development of cigarettes in everyday life within the project of modernity of the nineteenth and twentieth centuries. It goes on to assess the habituated, temporal and experiential aspects of individual smoking practices in everyday lifeworlds. Finally, it argues that smoking, while distributed in important ways by social class, also works relationally to render and inscribe it

Social sector expenditures and rainy-day funds

Gonzalez and Paqueo examine the effects of budget stabilization funds--often called rainy-day funds--on the volatility of social spending and, for contrast, on nonsocial sector spending. They analyze the rainy-day funds of U.S. states. The authors find that rainy-day funds are ineffective in reducing the volatility of nonsocial sector expenditures but are effective in reducing the volatility of social sector expenditures. The authors also find that states that have stringent deposit and withdrawal rules have higher rainy-day fund balances, and thus are more effective in reducing the volatility of social sector expenditures. Finally, for long-term effectiveness, stabilization funds depend obviously on sustained economic growth.Urban Governance and Management,Environmental Economics&Policies,Regional Governance,Infrastructure Finance,Public Sector Economics&Finance,National Governance,Environmental Economics&Policies,Infrastructure Finance,Infrastructure Finance,Public Sector Economics&Finance