TY - JOUR
T1 - Productivity measurement in gambling
T2 - Plant-level evidence from the United Kingdom
AU - Paton, David
AU - Siegel, Donald S.
AU - Williams, Leighton Vaughan
PY - 2010/4
Y1 - 2010/4
N2 - Although gambling is one of the fastest-growing service industries, there have been no studies of total factor productivity (TFP) in this sector. We attempt to fill this gap using establishmentlevel data from the United Kingdom. We also discuss key measurement issues in calculating gambling productivity and estimate labor and TFP equations, based on a stochastic frontier production function framework, focusing in particular on the impact of information technology on productivity. Our preliminary results suggest that the production function models fit well, generating plausible elasticity estimates. We find consistent evidence that productivity increased following major reforms to gambling taxation in 2001. Our findings yield limited evidence of regional variations in efficiency. Another key preliminary result is that internet operations appear to be associated with higher relative efficiency.
AB - Although gambling is one of the fastest-growing service industries, there have been no studies of total factor productivity (TFP) in this sector. We attempt to fill this gap using establishmentlevel data from the United Kingdom. We also discuss key measurement issues in calculating gambling productivity and estimate labor and TFP equations, based on a stochastic frontier production function framework, focusing in particular on the impact of information technology on productivity. Our preliminary results suggest that the production function models fit well, generating plausible elasticity estimates. We find consistent evidence that productivity increased following major reforms to gambling taxation in 2001. Our findings yield limited evidence of regional variations in efficiency. Another key preliminary result is that internet operations appear to be associated with higher relative efficiency.
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U2 - 10.4284/sej.2010.76.4.953
DO - 10.4284/sej.2010.76.4.953
M3 - Article
AN - SCOPUS:77952163286
SN - 0038-4038
VL - 76
SP - 953
EP - 975
JO - Southern Economic Journal
JF - Southern Economic Journal
IS - 4
ER -