"Gambling in America carefully breaks new ground by developing analytical tools to assess the benefits and costs of the economic and social changes introduced by casino gambling in monetary terms, linking them to individual households' utility and well-being. Since casinos are associated with unintended and often negative economic consequences, these factors are incorporated into the discussion. The book also shows how amenity benefits - for casinos, the benefit to consumers of closer proximity - enter the evaluation. Other topics include agent incentives and public decision making, conceptual clarifications about economic development, cost-benefit analysis, and net export multiplier models. Professor Grinols finds that, in considering all relevant factors, the social costs of casino gambling outweigh their social benefits."

"Earl L. Grinols is Professor of Economics at the University of Illinois, Champaign-Urbana. He has taught at MIT, Cornell University and the University of Chicago. Professor Grinols worked as a research economist for the U.S. Department of the Treasury and as Senior Economist for the Council of Economic Advisers. He has published in the fields of international economics, public finance, and macroeconomics, and is the author of two previous books, including an undergraduate text on microeconomics, and more than eighty other publications. He has testified before Congress and numerous statehouses on the economics of gambling. His work has been cited in numerous press accounts and he is often consulted by journalists and the media.

In 1994, Professor Grinols was one of the first academicians to recommend to Congress that it should create a national commission to study the impact of casino gambling. The National Gambling Impact Study Commission was established in 1996 and produced its final report in 1999, recommending a moratorium on gambling expansion. To spark awareness and greater interest, Dr. Grinols focused his research on the importance of a cost-benefit review of gambling, comparing the benefits of casinos to the social costs that they would create. Among the leading newspapers that have cited his work are the New York Times, Wall Street Journal, Washington Post, Los Angeles Times, Boston Globe, Atlanta Journal and Constitution, Seattle Post, Congressional Quarterly Review, Chicago Tribune, The Economist, Time, and U.S. News and World Report. News wire services covering his research include UPI, AP, Reuters, Copley, Gannett, Federal, Cox, Scripps, Howard, and Dow Jones Newswires."

40 West 20th Street, New York, NY 10011-4211
published 2004

Business Profitability Versus Social Profitability: Evaluating Industries
with Externalities, The Case of the Casino Industry

By Earl L. Grinols and David B. Mustard