| This dissertation examines the economic impact of casino gambling. The dissertation proceeds in three main parts. First, the impact of casinos on housing prices is estimated. Second, the casino location decision is formally modeled. Finally, a matching estimator is constructed to assess the impact of casinos on key economic variables.;Casinos are associated with approximately two percent higher house prices in regions where they are located when controlling for other observable characteristics. This is due in to the non-random nature of the location decision. The increase in house prices depends inversely on population density, with the positive relationship disappearing as density increases.;A variety of factors influence the casino location decision, and the factors are different for Native American and non-Native American casinos. Both types open in counties with large populations. Native American casinos are likely to locate in areas with many Native Americans, high levels of unemployed resources, and in areas with low voter resistance to gambling. Non-Native American casinos are likely to open near the Mississippi River and near other casinos.;The casino location model is used to develop a propensity score that is used to match casino counties with non-casino counties to create a randomized experiment for measuring the effect of casinos on important economic variables. Native American casino counties show an increase in economic activity of around three percent to four percent in population, employment, and housing units, while no significant impact is found for non-Native American casinos. Neither type of casino has any significant impact on quality of life in either direction. |
