| Preface | 6 |
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| Contents | 8 |
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| 1 Introduction | 12 |
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| 1.1 Outline of the book | 13 |
| 2 Casino gambling and economic growth | 15 |
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| 2.1 Introduction | 15 |
| 2.2 Increased employment and wages | 17 |
| 2.3 Capital inflow | 18 |
| 2.4 Increased tax revenues | 19 |
| 2.5 Import substitution | 20 |
| 2.6 Increased “trade” | 21 |
| 2.7 Increased transactions volume | 22 |
| 2.8 Consumer surplus and variety benefits | 24 |
| 2.9 Potential for immiserizing growth | 25 |
| 2.10 Conclusion | 26 |
| 3 Misconceptions about casinos and growth | 29 |
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| 3.1 Introduction | 29 |
| 3.2 Industry cannibalization | 30 |
| 3.3 The factory-restaurant dichotomy | 33 |
| 3.4 The export base theory of growth | 35 |
| 3.5 Money inflow (mercantilism) | 38 |
| 3.6 Conclusion | 42 |
| 4 Evidence on the growth effects of gambling | 44 |
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| 4.1 Introduction | 44 |
| 4.2 The empirical question | 44 |
| 4.3 Non-technical explanation of Granger causality | 46 |
| 4.4 Granger causality with panel data | 48 |
| 4.5 Empirical results | 54 |
| 4.6 Summary and conclusion | 64 |
| 5 Relationships among U.S. gambling industries | 67 |
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| 5.1 Introduction | 67 |
| 5.2 Literature review | 69 |
| 5.3 Data | 72 |
| 5.4 Model and results | 79 |
| 5.5 Policy issues | 87 |
| 5.6 Conclusion | 90 |
| 6 The social costs of gambling | 92 |
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| 6.1 Introduction | 92 |
| 6.2 The economic definition of “social cost” | 95 |
| 6.3 Modeling social costs | 96 |
| 6.4 Legitimate social costs | 104 |
| 6.5 Items improperly defined as social costs | 108 |
| 6.6 Conclusion | 117 |
| 7 Miscellaneous social cost issues | 119 |
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| 7.1 Introduction | 119 |
| 7.2 Problems estimating social cost values | 120 |
| 7.3 Unidentified and unmeasured social costs | 128 |
| 7.4 Other perspectives on social costs | 135 |
| 7.5 Adopting a single social cost methodology | 141 |
| 7.6 Conclusion | 142 |
| 8 Problems in gambling research | 144 |
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| 8.1 Introduction | 144 |
| 8.2 Recognizing scopes of expertise | 147 |
| 8.3 Calls for objectivity and transparency in research | 149 |
| 8.4 General problems in the literature | 150 |
| 8.5 Specific examples of errors | 156 |
| 8.6 Conclusion | 169 |
| 9 Conclusion | 170 |
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| 9.1 Introduction | 170 |
| 9.2 Summary of economic issues | 170 |
| 9.3 Prevalence of pathological gambling | 173 |
| 9.4 Foundations of gambling policy | 175 |
| 9.5 Conclusion | 178 |
| Appendix Primer on microeconomics | 180 |
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| A.1 The production possibilities frontier | 180 |
| A.2 The indifference curve | 184 |
| A.3 Allocative efficiency | 186 |
| A.4 Supply, demand, and markets | 188 |
| A.5 Producer and consumer surplus | 190 |
| A.6 Summary | 192 |
| References | 193 |
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| Index | 208 |
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