Tortoise and the Hare Revisited? A CGE Analysis of Gaming and State Tax Revenues:
State tax revenues from casinos as a share of total state gaming revenues generally correlate well with the year of legalization. The share ranges from about 8.0 percent in Nevada, the first state to legalize gambling, to 47.4 percent in Pennsylvania, one of the most recent state to legalize gambling. As a result, even though Nevada's agglomeration of gaming remains the largest within the U.S., its direct state revenues from that industry are now dwarfed by those of recent state entrants. Theoretically speaking, such heavy tax rates should dampen growth of the casino revenues in states that adopt them. Indeed, states with lower tax rates do, in fact, tend to have larger gaming revenue streams: This suggests more jobs and income are generated directly by the gaming industry when lower tax rates are applied. This paper, therefore, probes the size of the indirect economic activity that would have to be generated through spending of casinos on state-based labor and vendors in order to offset the benefits states could obtain if they simply applied a higher direct tax rate on gaming. This issue is examined through the lens of the New Jersey casino resort industry.
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.:
- Álvarez-Martínez, María Teresa & Polo, Clemente, 2012. "A general equilibrium assessment of external and domestic shocks in Spain," Economic Modelling, Elsevier, vol. 29(6), pages 2486-2493.
- James Andrew Giesecke, 2011.
"Development of a Large-scale Single US Region CGE Model using IMPLAN Data: A Los Angeles County Example with a Productivity Shock Application,"
Spatial Economic Analysis,
Taylor & Francis Journals, vol. 6(3), pages 331-350, April.
- James A. Giesecke, 2009. "Development of a large-scale single U.S. region CGE model using IMPLAN data: A Los Angeles County example with a productivity shock application," Centre of Policy Studies/IMPACT Centre Working Papers g-187, Victoria University, Centre of Policy Studies/IMPACT Centre.
- 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.
- Chang Seung & Edward Waters, 2010. "Evaluating Supply-Side And Demand-Side Shocks For Fisheries: A Computable General Equilibrium (Cge) Model For Alaska," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 87-109.
- 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.
- Michael Lahr, 2001. "Reconciling Domestication Techniques, the Notion of Re-exports and Some Comments on Regional Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 165-179.
- Peter McGregor & Mark Partridge & Dan Rickman, 2010. "Innovations in Regional Computable General Equilibrium (CGE) Modelling," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1307-1310. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p191. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.