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Casinos, Crime, and Community Costs

  • Earl L. Grinols

    (University of Illinois)

  • David B. Mustard

    (University of Georgia)

We examine the relationship between casinos and crime using county-level data for the US between 1977 and 1996. Casinos were non-existent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, while those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8 percent of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per adult per year.

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File URL: http://econwpa.repec.org/eps/le/papers/0501/0501001.pdf
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Paper provided by EconWPA in its series Law and Economics with number 0501001.

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Length: 34 pages
Date of creation: 05 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwple:0501001
Note: Type of Document - pdf; pages: 34
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Steven D. Levitt, 1995. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," NBER Working Papers 5268, National Bureau of Economic Research, Inc.
  2. Ian Ayres & Steven D. Levitt, 1997. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," NBER Working Papers 5928, National Bureau of Economic Research, Inc.
  3. Mocan, H Naci & Gittings, R Kaj, 2003. "Getting Off Death Row: Commuted Sentences and the Deterrent Effect of Capital Punishment," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 453-78, October.
  4. repec:cup:cbooks:9780521830133 is not listed on IDEAS
  5. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-91, October.
  6. David B. Mustard, 2003. "Reexamining Criminal Behavior: The Importance of Omitted Variable Bias," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 205-211, February.
  7. H. Naci Mocan & R. Kaj Gittings, 2001. "Pardons, Executions and Homicide," NBER Working Papers 8639, National Bureau of Economic Research, Inc.
  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.
  9. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc.
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