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来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w23969 |
来源ID | Working Paper 23969 |
A Tale of Two Cities: Cross-Border Casino Competition Between Detroit and Windsor | |
Juin-Jen Chang; Ching-Chong Lai; Ping Wang | |
发表日期 | 2017-10-30 |
出版年 | 2017 |
语种 | 英语 |
摘要 | We develop a framework to study analytically and quantitatively relentless cross-border casino competition with social-disorder and income-creation externalities. Two bordering casinos compete with each other for the external source of demand of recreational and problem gamblers from the neighboring city and the two city governments set their optimal casino revenue tax and gambler tax surcharge to maximize social welfare. We show that cross-border casino gambling makes aggregate casino demand more elastic despite the addictive nature of gambling. While a lower commuting cost favors a cross-border casino in a city with a weaker taste for gambling, the positive scale effect of its own population may be offset by a negative effect on cross-border gambling. By calibrating the model to fit the Detroit-Windsor market, we find that cross-border competition induces both cities to lower casino taxes to below their pre-existing rates, while the optimal tax mix features a shift from the tax surcharge to the casino revenue tax. Our counterfactual analysis suggests that lowering the commuting cost to the pre-911 level need not have favored Windsor, whereas increasing Detroit's population to the 2000 level would have only given Windsor a modest welfare gain. |
主题 | Microeconomics ; Households and Firms ; Welfare and Collective Choice ; Public Economics ; Taxation |
URL | https://www.nber.org/papers/w23969 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/581643 |
推荐引用方式 GB/T 7714 | Juin-Jen Chang,Ching-Chong Lai,Ping Wang. A Tale of Two Cities: Cross-Border Casino Competition Between Detroit and Windsor. 2017. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w23969.pdf(1576KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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