1 Gambling with our Future? The Impact of Gambling on the Erie Area The Fifth Annual ERIE Economic Conference Tuesday, August 23, 2005 The Economic Research Institute of Erie The Sam and Irene Black School of Business Penn State Erie

2 Special Thanks to… The Sam and Irene Black School of Business Penn State Erie

3 The Erie Regional Economy Dr. James A. Kurre

4 Erie Population

Erie, PA and U.S. Population Indexes

8 The Size of the Erie Economy Employment: approx. 134,000 in May 2005 Number of Nonfarm Business Establishments –6,807 establishments with employees in 2002 –13,055 nonemployer establishments in 2002 Aggregate Personal Income: $7.2 bil. in 2003 Gross Metro Product: $10.0 billion in 2003

9 Erie Income Per Capita, % increase : 613%

10 Erie Income Per Capita Adjusted for Inflation % increase : 46.3%

11 Erie and U.S. Real Income Per Capita % increase : Erie 46.3% U.S. 68.4%

12 Erie Income per Capita as a % of U.S.

13 Erie Income per Capita as a % of U.S.

14 Personal Income Per Capita 2003 Personal % of Income U.S. Erie $25, U.S. 31,

15 Erie and U.S. Poverty Rates

16 Unemployment Rates

17 Unemployment Rates

18 Difference in Unempt Rates: Erie - US

19 Property Crime per 100,000 People

20 Property Crime per 100,000 People

21 Violent Crime per 100,000 People

22 Violent Crime per 100,000 People

23 Erie Crime Rates Compared to U.S. Metro Average

24 Industrial Distribution of Erie Employment, 2004

25 Industrial Distribution of Erie and U.S. Employment, 2004

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27 Lorenz Curves and Gini Indexes 0% 20% 40% 60% 80% 100% 0%20%40%60%80%100% Proportion of Population Proportion of Income

28 Lorenz Curves and Gini Indexes 0% 20% 40% 60% 80% 100% 0%20%40%60%80%100% Proportion of Population Proportion of Income Perfectly Equal Distribution

29 Lorenz Curves and Gini Indexes 0% 20% 40% 60% 80% 100% 0%20%40%60%80%100% Proportion of Population Proportion of Income

30 Lorenz Curves and Gini Indexes 0% 20% 40% 60% 80% 100% 0%20%40%60%80%100% Proportion of Population Proportion of Income Perfectly Unequal Distribution

31 Lorenz Curves and Gini Indexes 0% 20% 40% 60% 80% 100% 0%20%40%60%80%100% Proportion of Population Proportion of Income A B Lorenz Curve GINI INDEX = A / (A+B)Range: 0 to 1

32 Gini Indexes for 2000 Zero: Perfect Equality One: Perfect Inequality #329 New York.461 U.S..380 #1 Sheboygan WI.429 #102 Erie PA

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35 Gini’s: Gini Ratio USPA

36 Gini’s:

37 WHY? Possible Explanations: –City size –Education level or disparity –Level of Income –Age of population –Gender/race –Others…

38 The Impact of Travel & Tourism in Erie, 2003 Tourism Employment: –7,933 direct tourism/travel employees –Another 4,139 indirect and induced 8.9% of Erie’s total employment Tourism Wages: $348 million –Average Wage Per Direct Employee: $24,830 Erie’s contribution to Tourism Gross State Product: $514 million Visitor Spending: $498.2 million

39 Visitor Spending 2003

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