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Casinos, Crime, and Community Costs

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Author Info
Earl L. Grinols (University of Illinois)
David B. Mustard (University of Georgia)

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Abstract

We examine the relationship between casinos and crime using county-level data for the US between 1977 and 1996. Casinos were non-existent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, while those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8 percent of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per adult per year.

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Publisher Info
Paper provided by EconWPA in its series Law and Economics with number 0501001.

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Length: 34 pages
Date of creation: 05 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwple:0501001

Note: Type of Document - pdf; pages: 34
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Web page: http://129.3.20.41

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Related research
Keywords: Crime Casinos Social Costs Problem and Pathological Gambling

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K - Law and Economics

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ricardo C. Gazel & Dan S. Rickman & William N. Thompson, 2001. "Casino gambling and crime: a panel study of Wisconsin counties," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 65-75. [Downloadable!]
  2. David B. Mustard, 2003. "Reexamining Criminal Behavior: The Importance of Omitted Variable Bias," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 205-211, 01. [Downloadable!] (restricted)
  3. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Mocan, H Naci & Gittings, R Kaj, 2003. "Getting Off Death Row: Commuted Sentences and the Deterrent Effect of Capital Punishment," Journal of Law & Economics, University of Chicago Press, vol. 46(2), pages 453-78, October.
  5. Levitt, Steven D, 1998. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," Economic Inquiry, Oxford University Press, vol. 36(3), pages 353-72, July.
    Other versions:
  6. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities From Unobservable Victim Precaution: An Empirical Analysis Of Lojack," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 43-77, February. [Downloadable!] (restricted)
    Other versions:
  7. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. H. Naci Mocan & R. Kaj Gittings, 2001. "Pardons, Executions and Homicide," NBER Working Papers 8639, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert E. Hoyt & David B. Mustard & Lars S. Powell, 2005. "The Effectiveness of Insurance Fraud Statutues: Evidence from Automobile Insurance," Risk and Insurance 0501001, EconWPA. [Downloadable!]
  2. Luca Bossi & Pedro Gomis-Porqueras & David L. Kelly, . "Optimal Second Best Taxation of Addictive Goods," Working Papers 0708, University of Miami, Department of Economics. [Downloadable!]
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