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Do Good Fences Make Good Neighbors? The Cross Border Impact of Casino Entrance
Author(s) -
Hicks Michael J.
Publication year - 2014
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12031
Subject(s) - redistribution (election) , economics , econometric model , welfare , econometric analysis , aggregate (composite) , econometrics , redistribution of income and wealth , demographic economics , macroeconomics , unemployment , market economy , materials science , politics , political science , law , composite material
This study estimates the impact of casino entrance in adjacent counties on aggregate and selected subsector incomes on counties adjacent in Indiana from 1990 to 2008. Employing a spatial econometric model and an approach that combines pre‐casino entrance forecasts and actual income changes, this study finds very modest increases in income growth in casino counties in the econometric model but adjacent county income declines which are economically irrelevant. The forecast approach mirrors, with less precision, this finding. These findings suggest that welfare effects of casinos are more geographically distributed than the literature has yet reported primarily because of the redistribution of retail trade.