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

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