Do casinos export bankruptcy?
This paper measures the extent to which destination resort casinos export bankruptcy back to visitors' home states. Previous literature has alluded to this possibility, but previous research has not examined the issue. Using various survey data, we calculate the number of visits from each state to casino resort destinations in Nevada, New Jersey, and Mississippi. We find strong evidence that states having more residents who visit out-of-state casino resorts have roughly 10% higher bankruptcy filing rates, on average. This effect is dominant in the south, suggesting that casinos located in wealthier regions are less likely to export bankruptcy.
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|Authors:||Garrett, Thomas A. ; Nichols, Mark W.|
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics). - Elsevier, ISSN 2214-8043. - Vol. 37.2008, 4, p. 1481-1494