CASINOS, HOTELS, AND CRIME

William S. Reece

Contemporary Economic Policy, 2010, vol. 28, issue 2, 145-161

Abstract: This paper examines the links among casinos, hotels, and crime using Indiana's counties for 1994‐2004. In estimating casinos' impacts, I introduce a measure of casino activity in addition to variables related to the timing of casino opening. I test whether or not the number of hotel rooms affects crime rates. Increased casino activity reduces crime rates except for burglary, where crime rates rise after a lag. Leaving out a measure of casino activity appears to create a serious specification error. Finally, including problem crime data plagued by incomplete reporting affects the estimated impact of casinos on crime. (JEL R11, L83)

Date: 2010
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