Teresa Alvarez-Martinez, Maria , Lahr, Michael L.
No
GROWTH CHANGE
Article
Científica
0.561
0.982
01/06/2016
000378622800006
Theoretically speaking, heavy tax rates on gambling should dampen growth of the casino revenues. Indeed, a cursory glance at data across U.S. states suggests that more jobs and income are generated directly by the gaming industry when lower tax rates are applied. Using a detailed computable general equilibrium model, we evaluate the effects of a proposed machine-based casino on New Jersey's economy as well as on the state's existing set of casino resorts in Atlantic City. We find few winners other than the state's tax coffers.