Research

Local and Statewide Smoke-Free Laws in Nebraska: The Effects on Keno Establishments

http://onlinelibrary.wiley.com/doi/10.1111/j.1465-7287.2012.00326.x/abstract

This study examines how smoke-free laws influence cross-border keno shopping in Nebraska. We exploit smoke-free law variation in timing and location to identify keno revenue gains and losses between neighboring smoke-free and smoke-friendly areas. We find the Lincoln municipal smoke-free law reduced keno revenue by 23.5% in Lincoln and increased keno revenue by 30.0% in smoke-friendly Surrounding Lincoln counties. The Omaha municipal smoke-free law reduced keno revenue by 14.8% in Omaha and increased keno revenue by 7.1% in smoke-friendly Surrounding Omaha counties. Following the Nebraska statewide law, no Nebraska areas had a smoke-friendly advantage and keno revenue fell by an insignificant 1.0% and 5.2% in the surrounding Lincoln and Omaha counties, respectively. Our results may be of interest to local policy makers interested in understanding the amount of business activity and tax revenue that may be migrating out of a community or even the state. (JEL l18, K32)

Publication Information
Article Title: Local and Statewide Smoke-Free Laws in Nebraska: The Effects on Keno Establishments
Journal: Contemporary Economic Policy (Jun, 2013)
first published online May, 2012
Author(s): Dority, Bree;  McGarvey, Mary G;  Thompson, Eric;  Sainath, Jyothsna
Researcher Information
    
McGarvey, Mary G
McGarvey, Mary G
Associate Professor of Economics
Expertise:
  • Applied Econometrics
  • Public Policy Analysis
  • Economics of Obesity
  • Labor Markets
Economics
CoB 525 P
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-9415
mmcgarvey1@unl.edu
Thompson, Eric
Thompson, Eric
Karl H. Nelson Associate Professor of Economics, Director of the Bureau of Business Research
Expertise:
  • Bureau of Business Research
  • Regional Economics
Economics
CoB 523 AA
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-3318
Fax: (402) 472-9700
ethompson2@unl.edu