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Impacts of Reduced Gaming Exports on the Economy of Nevada

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  • Chang K. Seung
  • Thomas R. Harris

Abstract

Previous studies of gaming have not calculated numerically the negative, economy†wide impacts on the Nevada economy from potential expansion of the gaming industry outside of the state. This study uses a state†level, two†sector computable general equilibrium (CGE) model of Nevada to investigate such impacts. In the Nevada CGE, both commodity prices and factor prices are endogenously determined and the impacts on major economic variables such as output, employment, and government revenue are estimated. Three different model variants are specified. Each variant is based on different assumptions regarding intersectoral and interregional factor mobility to analyze model sensitivity. Results show that the impacts on Nevada of the nationwide expansion of gaming could be significant under reasonable assumptions about factor mobility for Nevada. Also, results for total regional output and total government revenue are found to be very sensitive to the alternative factor mobility assumptions.

Suggested Citation

  • Chang K. Seung & Thomas R. Harris, 2000. "Impacts of Reduced Gaming Exports on the Economy of Nevada," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 12(2), pages 109-118, July.
    • Handle: RePEc:bla:revurb:v:12:y:2000:i:2:p:109-118
    DOI: 10.1111/1467-940X.00024
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    Cited by:

    1. Plassmann, Florenz, 2005. "The advantage of avoiding the Armington assumption in multi-region models," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 777-794, November.

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