IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v56y2016i1p101-123.html
   My bibliography  Save this article

Riverboat casino gambling impacts on employment and income in host and surrounding counties

Author

Listed:
  • Karl Geisler

    ()

  • Mark Nichols

    ()

Abstract

This paper explores how the introduction of casinos in riverboat states (Illinois, Indiana, Iowa, Louisiana, Mississippi, and Missouri) in the mid-1990s impacted county income and employment. Building on the previous literature, this study extends the analysis beyond the county with the casino to explore the effects experienced by neighboring counties using both a difference-in-differences estimation and a spatial Durbin model. Real per capita county income is found to increase in counties with casinos, while unemployment drops. Neighboring counties also experience significant increases in income, though to a lesser magnitude, while unemployment rates are unaffected. Where adjacent counties each have casinos, a competition effect is found that reduces the impacts below what either county would have experienced without competition. Neighboring counties that have casinos experience increases in income and decreases in unemployment similar to counties without casinos that are adjacent to casino counties. Copyright Springer-Verlag Berlin Heidelberg 2016

Suggested Citation

  • Karl Geisler & Mark 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.
  • Handle: RePEc:spr:anresc:v:56:y:2016:i:1:p:101-123
    DOI: 10.1007/s00168-015-0721-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00168-015-0721-x
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. James LeSage & Matthew Dominguez, 2012. "The importance of modeling spatial spillovers in public choice analysis," Public Choice, Springer, vol. 150(3), pages 525-545, March.
    2. 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.
    3. Douglas M. Walker & Todd M. Nesbit, 2014. "Casino Revenue Sensitivity to Competing Casinos: A Spatial Analysis of Missouri," Growth and Change, Wiley Blackwell, vol. 45(1), pages 21-40, March.
    4. 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.
    5. Cotti, Chad D. & Walker, Douglas M., 2010. "The impact of casinos on fatal alcohol-related traffic accidents in the United States," Journal of Health Economics, Elsevier, vol. 29(6), pages 788-796, December.
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Garrett, Thomas A. & Nichols, Mark W., 2008. "Do casinos export bankruptcy?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1481-1494, August.
    8. Michael Wenz, 2008. "Matching estimation, casino gambling and the quality of life," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(1), pages 235-249, March.
    9. J. Elhorst, 2012. "Dynamic spatial panels: models, methods, and inferences," Journal of Geographical Systems, Springer, vol. 14(1), pages 5-28, January.
    10. John C. Navin & Timothy S. Sullivan, 2007. "Do Riverboat Casinos Act as Competitors? A Look at the St. Louis Market," Economic Development Quarterly, , vol. 21(1), pages 49-59, February.
    11. Douglas M. Walker, 2007. "Quantifying the Social Costs and Benefits of Gambling," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 609-645, July.
    12. 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.
    13. Austin Nichols, 2007. "Causal inference with observational data," Stata Journal, StataCorp LP, vol. 7(4), pages 507-541, December.
    14. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.
    15. Douglas M. Walker & John D. Jackson, 2007. "Casinos and Economic Growth," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 593-607, July.
    16. Douglas M Walker, 2013. "Casinos And Economic Growth: An Update," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 7(2), pages 80-87.
    17. Chad Cotti, 2008. "The Effect of Casinos on Local Labor Markets: A County Level Analysis," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 2(2), pages 17-41, September.
    18. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bla:growch:v:48:y:2017:i:3:p:409-434 is not listed on IDEAS

    More about this item

    Keywords

    D4 Market Structure; Pricing; and Design: General; L1 Market Structure; Firm Strategy; and Market Performance: General ; R11 Regional Economic Activity: Growth; Development; Environmental Issues; and Changes ; R12 Size and Spatial Distributions of Regional Economic Activity;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:56:y:2016:i:1:p:101-123. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.