The Economics of Casino Gambling

Contents......Page 8
1. Introduction......Page 12
1.1 Outline of the book......Page 13
2.1 Introduction......Page 15
2.2 Increased employment and wages......Page 17
2.3 Capital inflow......Page 18
2.4 Increased tax revenues......Page 19
2.5 Import substitution......Page 20
2.6 Increased \"trade\"......Page 21
2.7 Increased transactions volume......Page 22
2.8 Consumer surplus and variety benefits......Page 24
2.9 Potential for immiserizing growth......Page 25
2.10 Conclusion......Page 26
3.1 Introduction......Page 29
3.2 Industry cannibalization......Page 30
3.3 The factory-restaurant dichotomy......Page 33
3.4 The export base theory of growth......Page 35
3.5 Money inflow (mercantilism)......Page 38
3.6 Conclusion......Page 42
4.2 The empirical question......Page 44
4.3 Non-technical explanation of Granger causality......Page 46
4.4 Granger causality with panel data......Page 48
4.4.1 Synopsis of Granger\'s procedure......Page 49
4.4.2 Modifying the procedure for panel data......Page 51
4.5 Empirical results......Page 54
4.5.1 Casino gambling......Page 55
4.5.2 Greyhound racing......Page 58
4.5.3 Lotteries......Page 60
4.6.1 Casino gambling and greyhound racing......Page 64
4.6.3 Conclusion......Page 65
5.1 Introduction......Page 67
5.2 Literature review......Page 69
5.3.1 Gambling volume variables......Page 72
5.3.2 Adjacent-state variables......Page 76
5.3.3 Demographic variables......Page 78
5.4 Model and results......Page 79
5.4.1 Discussion of results......Page 82
5.4.2 Effects of cross-equation constraints......Page 86
5.5 Policy issues......Page 87
5.5.1 Tax revenue......Page 89
5.6 Conclusion......Page 90
6.1 Introduction......Page 92
6.1.1 Chapter outline......Page 94
6.2 The economic definition of \"social cost\"......Page 95
6.3 Modeling social costs......Page 96
6.3.1 The definition applied......Page 97
6.3.2 Theft as an illustration of social cost......Page 98
6.3.3 Externalities and social costs......Page 100
6.3.4 Alleged social costs of gambling......Page 102
6.4.1 Legal costs......Page 104
6.4.3 Psychic costs......Page 107
6.5 Items improperly defined as social costs......Page 108
6.5.1 Wealth transfers......Page 109
6.5.2 Bad debts......Page 110
6.5.3 Bailout costs......Page 111
6.5.4 Government welfare expenditures......Page 112
6.5.5 Modeling transfers......Page 113
6.5.6 Industry cannibalization......Page 115
6.5.8 Productivity losses......Page 116
6.6 Conclusion......Page 117
7.1 Introduction......Page 119
7.2 Problems estimating social cost values......Page 120
7.2.2 Comorbidity......Page 121
7.2.3 Pathological gambling and \"rational addiction\"......Page 123
7.2.4 Surveys on gambling losses......Page 125
7.3.1 Restriction effects......Page 128
7.3.2 Lobbying......Page 131
7.4 Other perspectives on social costs......Page 135
7.4.1 Cost of illness (COI) approach......Page 136
7.4.3 Public health perspective......Page 137
7.4.4 Revisiting the definition of \"social cost\"......Page 138
7.4.5 The Australian Productivity Commission report......Page 139
7.5 Adopting a single social cost methodology......Page 141
7.6 Conclusion......Page 142
8.1 Introduction......Page 144
8.2 Recognizing scopes of expertise......Page 147
8.3 Calls for objectivity and transparency in research......Page 149
8.4.1 Conflict of interest allegations......Page 150
8.4.2 Dismissing research without refutation......Page 151
8.4.3 Ignoring published work......Page 153
8.5 Specific examples of errors......Page 156
8.5.1 Gambling as a wasteful activity......Page 157
8.5.2 Casinos and crime......Page 162
8.5.3 Grinols\' Gambling in America......Page 167
8.6 Conclusion......Page 169
9.2 Summary of economic issues......Page 170
9.2.1 Benefits......Page 171
9.2.2 Costs......Page 172
9.3 Prevalence of pathological gambling......Page 173
9.4 Foundations of gambling policy......Page 175
9.4.1 Are cost-benefit analyses useful?......Page 176
9.4.2 Property rights, freedom of choice, and government......Page 177
9.5 Conclusion......Page 178
A.1 The production possibilities frontier......Page 180
A.2 The indifference curve......Page 184
A.3 Allocative efficiency......Page 186
A.4 Supply, demand, and markets......Page 188
A.5 Producer and consumer surplus......Page 190
A.6 Summary......Page 192
References......Page 193
F......Page 208
R......Page 209
W......Page 210