Home > Term: windfall gains
windfall gains
Income you do not expect, such as winning a lottery prize. Economists have long argued about whether people are likely to save such windfalls or spend them. According to the permanent income hypothesis, favored by most economists, people save the lion's share of windfall gains. But real life often contradicts this; ask any lottery winner.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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- summer.l
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