What does REMI say? sm Regional Economic Impacts of Casino Development Presented by: Mike Fitzgerald.

what does REMI say? sm

Regional Economic Impacts of

Casino Development

Presented by:Mike Fitzgerald

what does REMI say? sm

Contents

Casinos: advantages/disadvantages Considerations Choosing Policy Variables Methodology Model Demonstration Conclusion

what does REMI say? sm

Casinos: Advantages

• Large construction spending• New employment • Fiscal tax revenues: personal income,

corporate, etc. • New alternative spending for visitors • More choices for residents

what does REMI say? sm

Casinos: Disadvantages

• Fiscal expenditures• Gambling addiction• Cost of possible crime • Dependence on “luxury” industry• Spending reallocation • Regressive

what does REMI say? sm

Considerations

– Large business development – Industries making up the development– Competition/displacement– Government incentives and spending– Fiscal feasibility– Other socioeconomic effects– New infrastructure

what does REMI say? sm

Possible Policy Variables

– Exogenous Final Demand: Construction

– Firm/Industry Sales/Employment

– Production Costs– Government

spending

– Non-pecuniary aspects

– Translator variables – Transfer payments – Consumer

reallocation– Consumer spending– Compensation

what does REMI say? sm

Structural Model

what does REMI say? sm

Methodology

• Exogenous Final Demand: Construction• Exogenous Sales/Firm Employment:

Amusement, gambling, and recreation• Production Costs• Local Government Spending

what does REMI say? sm

Model Demonstration

Inputs• Choose variables• Choose values

Run model Results

• Employment: by demand source• Fiscal revenue/expenditure drivers

what does REMI say? sm

Conclusion

• Many different variables and considerations • Casinos affect regions differently

– relatives measures– industrial makeup of the region – consumer behavior in regions

what does REMI say? sm

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