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The Diluted Economics of Casinos and Crime: A Rejoinder to Grinols and Mustard’s Reply


  • Douglas M. Walker


In their reply to my comment (Walker 2008) Grinols and Mustard explained that in their original study (2006) their interest was “in the costs to the host county associated with a change in crime from whatever source†(Grinols and Mustard 2008, p. 22). In this rejoinder, I explain that the estimated costs of crime attributable to casinos will be overstated if the estimated crime effects are based on the “undiluted†crime rate used by Grinols and Mustard (2006). I also discuss why this issue is important, in the context of “social cost of casino gambling†estimates that are frequently quoted in political debate and by the media.

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  • Douglas M. Walker, 2008. "The Diluted Economics of Casinos and Crime: A Rejoinder to Grinols and Mustard’s Reply," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 148-155, May.
  • Handle: RePEc:ejw:journl:v:5:y:2008:i:2:p:148-155

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    References listed on IDEAS

    1. Earl L. Grinols & David B. Mustard, 2006. "Casinos, Crime, and Community Costs," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 28-45, February.
    2. Earl L. Grinols & David B. Mustard, 2001. "Business profitability versus social profitability: evaluating industries with externalities, the case of casinos," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 143-162.
    3. Earl L. Grinols & David B. Mustard, 2008. "Correctly Critiquing Casino-Crime Causality," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 21-31, January.
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    Cited by:

    1. 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.
    2. Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
    3. Douglas M. Walker, 2010. "Casinos and Crime in the USA," Chapters,in: Handbook on the Economics of Crime, chapter 19 Edward Elgar Publishing.

    More about this item


    casinos; crime;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism


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