Casino revenue and the Illinois smoking ban

Smoking was banned in all Illinois casinos in January 2008. We explore the effects that the smoking ban has had on Illinois casino revenue and attendance. Our empirical methodology extends and enhances that of previous literature in that we observe a natural experiment in comparing the performance of Illinois casinos with out-of-state casinos (no smoking ban) that share a market with Illinois casinos. Estimates suggest that revenue and admissions at Illinois casinos declined by more than 20 percent ($400 million) and 12 percent, respectively. Calculations reveal that casino tax revenue to state and local governments declined by approximately$200 million.Gambling industry ; Tobacco industry ; Illinois

Non-monetary Trade and Differential Access to Credit in the Russian Transition

The unusual rise and fall of non-monetary trade (NMT) in the Russian transition has been a subject of heated debates. Yet, this phenomenon is often viewed as a peculiarity that one cannot explain by economic considerations alone. In this paper we show that the resort to NMT was a rational, albeit spontaneous, reaction of industrial enterprises to the outflow of liquidity, which in turn was precipitated by the combination of persistent budgetary deficit and strict monetary policy. The IMF pledge to stand by if the government became insolvent made this policy credible. Several mechanisms contributed to the development of credit rationing of enterprises. First, the abandonment of implicit guarantees on loans extended to enterprises by the Central Bank of Russia prompted commercial banks to shift credit to other groups of borrowers. Second, when the Federal Government moved to finance its budgetary deficit through open-market operations, it crowded out commercial credit. Third, public money was transferred predominantly to households who partially lent it back to the government. Fourth, the policy of low exchange rate kept the balance of payment close to zero, which prevented the monetary base from growing. The default of August 1998 constituted a clear structural break. It prompted modifications in monetary and fiscal policies. The collapse of the market for state securities led to widespread bank failures. The CBR abandoned its policy of non-intervention in fiscal affairs and cleared debts that the governments and enterprises accumulated. In addition, money supply expanded because increased inflows of foreign currency were incompletely sterilized. The combination of a lesser government presence at credit markets, clearance of debts, and increase in money supply injected liquidity in domestic producers and they abandoned NMT. Statistical evidence supports the claim that NMT was caused by credit rationing experienced by enterprises. A GLS model with four explanatory variables (and dummies accounting for a structural break of August 1998) explains more than 90% of monthly changes in NMT for the period of February 1992 – December 2001. The collapse of the market for government loans appears to be the most significant event accountable for the structural break.Non-monetary trade, structural break, Russian transition

Time Consistency of Monetary Policy in Separating Exchange Markets

Though a dual exchange rate system might be a preferable intermediate step from a fixed to a flexible rate, the efficiency of such a regime depends on the complete separation between two markets. When government reneges on its announcement and changes the commercial rate, the time inconsistency of monetary policy arises. This event might result in incomplete separation, the instability of spread and hence the erosion of this management. This paper attempts to investigate the role of credibility in such a regime. It concludes that, for successfully separating exchange markets, government should fix the commercial exchange rate rather than change it.

The Meanings of Deindustrialization

The point of departure for any discussion of deindustrialization must be respect for the despair and betrayal felt by workers as their mines, factories, and mills were padlocked, abandoned, turned into artsy shopping spaces, or even dynamited. While economists and business leaders often speak in neutral, even hopeful, terms such as restructuring, downsizing, or creative destruction, metaphors of defeat and subjugation are more appropriate for the workers who banked on good-paying industrial jobs for the livelihoods of their families and their communities

No ifs, ands or butts: Illinois casinos lost revenue after smoking banned

Gambling industry ; Tobacco industry ; Illinois

The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon

Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors' improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the debate on the pernicious effects of the illegality of drug trade. This paper explores a singular episode of transition of a market from legal to illegal to provide a first piece of evidence on the causal effect of illegality on systemic violence. Brazil has historically been the main world producer of big leaf mahogany (a tropical wood). Starting in the 1990s, policies restricting extraction and trade of mahogany, culminating with prohibition, were implemented. First, we present evidence that large scale mahogany trade persisted after prohibition, through misclassification of mahogany exports as "other tropical timber species." Second, we document relative increases in violence after prohibition in areas with: (i) higher share of mahogany exports before prohibition; (ii) higher suspected illegal mahogany activity after prohibition; and (iii) natural occurrence of mahogany. We believe this is one of the first documented experiences of increase in violence following the transition of a market from legal to illegal.illegal markets, violence, homicide, mahogany, Brazil

Nematode control in 'green' ruminant production systems

Collectively, nematode parasites of domestic ruminants continue to pose the greatest disease problem in grazing livestock systems worldwide, despite the powerful and extensive chemotherapeutic arsenal available for their control. The widespread development of anthelmintic resistance, particularly in nematode parasites of small ruminants, and the trend towards nonchemical (ecological, organic, green) farming of livestock has provided an impetus for the research and development of alternative parasite control methods. This article provides a brief overview of the non-chemotherapeutic options for parasite control and how they might play a role either in organic farming or in other low-input farming systems

The use of violence ini llegal markets: evidence from mahogany trade in the Brazilian Amazon

Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors’ improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the debate on the pernicious effects of the illegality of drug trade. This paper explores a singular episode of transition of a market from legal to illegal to provide a first piece of evidence on the causal effect of illegality on systemic violence. Brazil has historically been the main world producer of big leaf mahogany (a tropical wood). Starting in the 1990s, policies restricting extraction and trade of mahogany, culminating with prohibition, were implemented. First, we present evidence that large scale mahogany trade persisted after prohibition, through misclassification of mahogany exports as “other tropical timber species.” Second, we document relative increases in violence after prohibition in areas with: (i) higher share of mahogany exports before prohibition; (ii) higher suspected illegal mahogany activity after prohibition; and (iii) natural occurrence of mahogany. We believe this is one of the first documented experiences of increase in violence following the transition of a market from legal to illegal.illegal markets, violence, homicide, mahogany, Brazil Jel Codes: K42, O13, O17, Q58

Developing an Agenda for Change for New Jersey's Urban Water Infrastructure

A water infrastructure crisis looms in New Jersey's oldest and largest cities -- cities that comprise nearly one-fifth of the state's population and are projected to absorb much of its future growth, and yet have combined sewer systems, which carry both sewage and rainwater, dating to the 19th century. These combined sewers include overflow relief points that, during rain events, often result in combined sewer overflows (CSOs), which discharge raw sewage into waterways. These combined systems can also result in raw sewage backing up into city streets, parks and homes, threatening public safety and health. Of the nation's 860 communities plagued historically by CSOs, just 84 have yet to upgrade their systems or adopt plans to address the problem. Twenty-one of those 84 communities -- one-quarter -- are located in New Jersey. Urban water infrastructure challenges in New Jersey are not limited to the 21 cities with combined sewers. Even outside the CSO cities, polluted stormwater runoff is the state's leading threat to water quality. Many sanitary and separate storm sewer pipes and water-supply lines in the state are more than 100 years old and showing their age. The annual statewide loss (via leaks) of treated drinking water is estimated at 20 -- 22 percent, with some distribution systems losing as much as 45 percent. Water main breaks and resulting service outages are a common aspect of life in many cities. In addition, preexisting flooding problems are being exacerbated by more intense rainfall events driven by climate change, and such events are expected to become more frequent in the future. Most notably, in October 2012 Hurricane Sandy dramatically exposed the vulnerability of many of New Jersey's urban water systems to flooding and other storm damage. Collectively, the problems stemming from aging and degraded water-supply, wastewater and stormwater infrastructure threaten to disrupt daily life, commerce and industry in these communities, and stunt their future economic prosperity.In May 2014, The Johnson Foundation at Wingspread partnered with New Jersey Future and the Geraldine R. Dodge Foundation to convene a diverse group of New Jersey leaders to develop an agenda for change aimed at catalyzing action to address urban water infrastructure challenges in the state. Participants represented diverse perspectives, including those of local, state and federal government; public and investorowned water utilities; economic and community development organizations; environmental groups; businesses; and finance and technology companies. The discussions focused on establishing guiding principles for improving urban water infrastructure in New Jersey's cities, identifying the driver for action and agreeing on priority action steps to stimulate progress on the issue. The convening resulted in two products:a three-page consensus "Agenda for Change for New Jersey's Urban Water Infrastructure", which captured the collective priorities of the group, andthis report, which elaborates upon the consensus document and presents The Johnson Foundation's synthesis of the broader range of information, insights and ideas shared during the convening