THE BEHAVIOR OF CASINO GAMING REVENUE OVER THE BUSINESS CYCLE CONSIDERING ALTERNATIVE MEASURES OF 'INCOME'

Authors :: Garrett, Thomas A.
Nichols, Mark W.
Source :: Contemporary Economic Policy. April, 2019, Vol. 37 Issue 2, p274, 23 p.
Publication Year :: 2019
Abstract: Reasons exist for believing that casino gaming revenue does not respond equally to all sources of income over the business cycle. We examine the growth and variability of casino revenue resulting from the growth and variability in different sources of income. We find that casino revenue behaves quite differently in response to short-run and long-run variation in each income source, thus revealing that the common use of personal income masks underlying drivers of each state's business cycle. Our results have implications for revenue forecasting models, research on the growth and variability of tax bases in general, and public policy. (JEL H72, H79, L83)<br />I. INTRODUCTION Casino gaming has become a prominent industry in the United States. Prior to the early 1990s, casino gaming was legal only in Nevada and New Jersey. Commercial casino [...]

Subjects :: United States -- Economic policy
Casinos -- Industry sales and revenue -- Taxation
Business cycles -- Analysis
Personal income -- Usage
State taxation -- Laws, regulations and rules
Government regulation
Business
Economics

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