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Figure 7 shows the predicted profile based on the augmented equation
for low- and high- density counties—represented by population densities of 100 people per square
mile and 1500 people per square mile—for aggravated assault and rape. Crime is not statistically
different from zero in the years before casino introduction and immediately thereafter, but begins
29
Figure 7: Population Density Interaction
to rise three or four years after introduction. By the fifth year after casino introduction, the figure
shows a statistically significantly elevated crime rate for both low- and high-density counties. The
other crimes (omitting murder) display a similar pattern. Overall 10 of the 12 estimated effects
are statistically significant after five years, and all 12 are positive. Introducing a density effect
does not change the prediction of the model. These results give us confidence that the effect of
casinos on crime is similar in large and small counties.
Figure 8 displays the estimated effect of casinos on large and small counties for auto theft.
Neither figure displays a profile similar to that of the other crimes, where crime begins to rise
three years after casino introduction. Large counties appear to have stable or declining auto
theft rates, consistent with the Lojack explanation, while smaller counties that would employ
Lojack less extensively or not at all appear to have a rising auto theft rate independent of casino
introduction.

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