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Do Good Fences Make Good Neighbors? The Cross Border Impact of Casino Entrance

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  • Michael J. Hicks

Abstract

This study estimates the impact of casino entrance in adjacent counties on aggregate and selected subsector incomes on counties adjacent in Indiana from 1990 to 2008. Employing a spatial econometric model and an approach that combines pre-casino entrance forecasts and actual income changes, this study finds very modest increases in income growth in casino counties in the econometric model but adjacent county income declines which are economically irrelevant. The forecast approach mirrors, with less precision, this finding. These findings suggest that welfare effects of casinos are more geographically distributed than the literature has yet reported primarily because of the redistribution of retail trade.

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  • Michael J. Hicks, 2014. "Do Good Fences Make Good Neighbors? The Cross Border Impact of Casino Entrance," Growth and Change, Wiley Blackwell, vol. 45(1), pages 5-20, March.
    • Handle: RePEc:bla:growch:v:45:y:2014:i:1:p:5-20
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    File URL: http://hdl.handle.net/10.1111/grow.12031
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    1. Walker, Douglas M. & Jackson, John D., 1998. "New Goods and Economic Growth: Evidence from Legalized Gambling," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 47-70, Fall.
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    6. Michael J. Hicks, 2009. "Racino Gaming's Impact on Wages, Employment, Economic Diversity and Stability: Evidence from a Spatial Model of West Virginia," Journal of Economic Insight, Missouri Valley Economic Association, vol. 35(1), pages 21-34.
    7. Hicks, Michael J., 2007. "A Quasi-Experimental Test of Large Retail Store Impacts on Regional Labor Markets: The Case of Cabela's Retail Outlets," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-7.
    8. 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.
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    10. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
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    Cited by:

    1. Karl R. Geisler & Mark W. Nichols, 2016. "Riverboat casino gambling impacts on employment and income in host and surrounding counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 101-123, January.
    2. Siew Hoon Lim & Lei Zhang, 2017. "Does Casino Development Have a Positive Effect on Economic Growth?," Growth and Change, Wiley Blackwell, vol. 48(3), pages 409-434, September.

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