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Does Indian Casino Gambling Reduce State Revenues? Evidence From Arizona

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Author Info
GARY C. ANDERS
DONALD SIEGEL
MUNTHER YACOUB

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Abstract

Critics of Indian gaming contend that reservation casinos have a negative impact on state economies. This paper tests the hypothesis that the introduction of Indian casinos caused a structural change in the formation of Arizona state revenues. Data are from Maricopa County, the largest county in Arizona. Findings suggest that Indian casinos may divert funds from taxable to non-taxable sectors. The growth in tax revenue from non-gaming sectors of the economy has masked these displacement effects. However, given the trend toward increasing the proportion of state funds from sales taxes, a diminution in the rate of economic growth could have serious implications for future state budgets. Copyright 1998 Western Economic Association International.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7287.1998.tb00524.x
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Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 16 (1998)
Issue (Month): 3 (07)
Pages: 347-355
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Handle: RePEc:bla:coecpo:v:16:y:1998:i:3:p:347-355

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  1. Albert N. Link & David Paton & Donald S. Siegel, 2003. "An Econometric Analysis of Trends in Research Joint Venture Activity," Rensselaer Working Papers in Economics 0305, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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  2. Stephen Fink & Jonathan Rork, 2003. "The Importance of Self-Selection in Casino Cannibalization of State Lotteries," Economics Bulletin, Economics Bulletin, vol. 8(10), pages 1-8. [Downloadable!]
  3. David Paton & Donald S. Siegel & Leighton Vaughan Williams, 2003. "Taxation and the Demand for Gambling: New Evidence from the United Kingdom," Rensselaer Working Papers in Economics 0306, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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