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Do Casinos Really Cause Crime?

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Author Info

  • Douglas M. Walker

Abstract

This paper discusses the recent study by Grinols and Mustard (2006), which examines the relationship between casinos and county-level crime in the U.S. The authors conclude that casinos cause a significant amount of crime. However, there are a number of problems with their analysis. The most serious problem is that their paper uses a crime rate that excludes the visiting population at risk, thereby overstating the crime rate in casino counties. Second, the crime data used are potentially inaccurate. Third, the results may suffer from a bias caused by counties self-selecting into the “casino county†category. Fourth, the dummy variables used to account for casinos do not allow the authors to isolate the crime effect caused by casinos. Finally, the authors make conclusions that are not supported by their data, analysis, and results.

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Bibliographic Info

Article provided by Econ Journal Watch in its journal Econ Journal Watch.

Volume (Year): 5 (2008)
Issue (Month): 1 (January)
Pages: 4-20

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Handle: RePEc:ejw:journl:v:5:y:2008:i:1:p:4-20

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Related research

Keywords: casinos; crime;

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Cited by:
  1. Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
  2. Daniel Montolio & Simón Planells, 2013. "Does tourism boost criminal activity? Evidence from a top touristic country," Working Papers 2013/4, Institut d'Economia de Barcelona (IEB).
  3. Falls, Gregory A. & Thompson, Philip B., 2014. "Casinos, casino size, and crime: A panel data analysis of Michigan counties," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 123-132.

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