PUBLIC FINANCE REVIEW Elliott, Navin / RIVERBOAT GAMBLING AND LOTTERY REVENUE Over the past decade, most states have introduced lotteries, and many now license casinos. To what extent does the presence of licensed casinos cannibalize revenues from state-sponsored lotteries? To what extent does pari-mutuel betting cannibalize revenues from state-sponsored lotteries? Based on pooled cross-section data for the period from 1989 to 1995, this research reveals significant cannibalization of lottery revenues by both casinos and pari-mutuel betting. Nevertheless, states, in general, gain by having both lotteries and casinos. In the case of pari-mutuel betting, however, the substitution is so severe that, at existing effective tax rates, lost lottery revenues outweigh states' receipts from pari-mutuel betting.
This article reviews methodological issues confronting authors and users of cconomic impact studies of public colleges and universities. Questions addressed includc the following: How should economic impact of regional public collegcs and univcrsities be defined? What considerations should govern thc definition or the geographical study area? How should tax support of publicly supported institutions be addressed? The article includes perspectives from recent literature considering these questions from both short-term and long-term perspcctives. Resolution of these issues depends upon careful delineation and cornmunication of thc alternative states of world between which the hypothetical impact is measured. CONOMIC IMPACT STUDIES CONTINUE TO BE AN IMPORTANT PUBLIC RELA-E tions tool for state colleges and universities (Dean 1991), especially in Limes of budgctary shortfalls and rescissions. Yet, such studies arc frequenlly criticized as biased in approach and conclusions. Some critics decry past studies as publicizing only the positive (Knapp et al. 1990). Others point out that such studics too frcqucnlly employ definitions which inflatc the impacts (Elliott et al. 1987; Bluestone 1993). Still others argue that past methodology has ignored univcrsitics' contributions to the stock of human capital and regional economic dcvclopmcnt (c.g., Berger and Black 1993; Bluestone 1993). A recent article in this journal (Hcdrick ct al. 1990) examined (and refuted) oftcn heard contentions that ncgativc regional effects of auxiliary activities of higher education institutions outweigh psitivc effects associated with their spending.
Roger Beck is an associate professor of agribusiness economics at Southern Illinois University at Carbondale; Donald Elliott and John Meisel are professors of economics at Southern Illinois University ai Edwardsville; and MichaelWagner is an independent research consultant. The authors wish to thank anonymous referees ,for their comments and suggestions on earlier versions of this paper. Any remuining errors are the responsibiliiies of the authors.
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