The Russian economy relies on the freight railways to an extraordinary degree. In 2001, after years of debate, the Russian government adopted an ambitious plan to transform this vertically integrated monopoly into a system that would rely more on private investment and competition and less on government ownership and regulation. This chapter examines the state of the industry after ten years of reforms, focusing on competition, tariffs, and private sector participation. Much remains to be decided, in particular the question of whether Russia will move in the direction of one of the three standard models seen in other countries—vertical separation, third-party access, or horizontal separation—or whether it will continue in the direction pursued in Kazakhstan and under discussion in Ukraine—vertical separation, but with locomotives and operations included with the network and competition limited to rolling stock ownership and freight forwarding.
Richard R. Nelson
This article argues that the conception and norms of capitalism, in particular the faith that market organization is the best way to govern economic activity, are much more unified and coherent than the actual organization of economic activity in countries that consider themselves capitalist. The latter is marked by great variation in the way different activities and sectors are governed. Although in countries regarded as capitalist market organization plays a powerful role in the governance of many economic activities, there also are many activities that are governed largely through nonmarket mechanisms. It is also argued that few activities or sectors are pure market or nonmarket. Most involve a mix of market and nonmarket elements.
John E. Anderson
This chapter examines how governments in many nations and regions tax casino gambling and also considers the economic effects of that taxation. The first section analyzes the nature of casino gambling, along with the forms of taxation that governments apply to casino operations, including wagering taxes, admissions taxes, fees, and other taxes. Section 2 examines the economics of casino taxation, including market analysis of a casino game, efficiency effects of casino game taxation, equity impacts or the incidence of casino taxation, and optimal government tax policy regarding casinos. Section 3 provides a summary of the forms of taxation used around the world, highlighting major gambling locations, such as Las Vegas, Macau (Macao), and Singapore, among others.
Kent Grote and Victor A. Matheson
This chapter surveys the literature on the economics of lotteries and is organized around two central themes. The first section examines the microeconomic aspects of lotteries, including consumer decision-making under uncertainty, price and income elasticities of demand for lottery tickets, cross-price elasticities of lottery tickets to each other and to other gambling products, consumer rationality and gambling, and the efficiency of lottery markets. The second section covers topics related to public finance and public choice, including the revenue potential of lotteries, the tax efficiency and dead-weight loss of lottery games, the horizontal and vertical equity of lotteries, earmarking and the fungibility of lottery revenues, and individual state decisions to participate in participate in public lotteries.
Western intelligence always has underestimated Russia’s military-industrial potential. Russia’s weapons production capacity in 1937 vastly exceeded Germany’sand had various technological advantages as well. This chapterdocuments Russia’s weapons production record and the scope of its military-industrial activities and then delves into the rationality and efficiency of the Kremlin’s approach, which is dubbed the “Muscovite system.” Comparisons are made with other European and U.S.models (from a neoclassical economic perspective) to pinpoint strengths and vulnerabilities, with special emphasis on RDT&E, technology transfer, and innovation. VitalyShlykov’s concept of structural militarizationis introduced to illuminate why the core Stalinist military industrial system didn’t vanish with the Soviet Union. Anatoly Serdyukov’s 2009reforms may, however, mark the beginning of the end for structural militarization, and perhaps more problematically the end of a half millennium of Muscovite strategic opportunism.
This chapter provides an overview of the literature on the impact of the Olympics. In addition, empirical findings relating to the announcement effect associated with the Olympics are presented, using London 2012 as a case study. Original research based on the impact of the 2012 announcement on participation rates in sport and physical activity in the UK is included. In the immediate aftermath of the announcement, there were notable gains on the London Stock Exchange experienced by companies in the construction sector and the leisure and hospitality sectors. The data suggest a positive and statistically significant effect of the Olympic announcement on participation in sport and leisure activity. They also show that there are potential intangible benefits associated with hosting the Olympics, but more work is required to unpick the mechanism which links the Olympics to participation in sport and to establish whether the legacy effects are permanent.
Victor A. Matheson
This chapter highlights a time series of comparative advertising revenue and ticket prices in secondary markets for the preeminent event in American sports: the National Football League (NFL)'s Super Bowl. The NFL itself has examined the effect of the Super Bowl on taxable sales. It is often claimed that the Super Bowl brings indirect or non-pecuniary benefits to host cities which add substantially to the direct monetary benefits. The game also brings potential intangible benefits to the host city. Ex post economic analyses of the Super Bowl by scholars not financially connected with the game have typically found that the observed effects of the game on real economic variables such as employment, government revenues, taxable sales, GDP, and personal income, although generally positive, are a fraction of those claimed by the league and sports boosters.
Rob Simmons and Christian Deutscher
This chapter examines the method by which host countries are selected by Fédération Internationale de Football Association (FIFA) for the rights to organize the World Cup finals, and also investigates the benefits to host countries from organizing this event. The benefits to soccer fans in a host country from new stadium infrastructure and other legacies of hosting the World Cup finals are explained. The chapter then pays attention to the players participating in the World Cup finals. FIFA operates two key restrictions on stadium development for World Cup finals. Recent appearances in World Cup finals matches do appear to have shop-window effects, both in raising player salaries paid by clubs and by helping players secure transitions to more highly ranked teams. The FIFA World Cup finals are, no doubt, here to stay as a vital component of the sporting calendar.
John C. Navin, Timothy S. Sullivan, and Warren D. Richards
This chapter reviews the literature on gaming and the restriction of smoking and then examines data on the riverboat casino market in the Illinois portion of the St. Louis Metropolitan area. This market is then used as a case study to discuss the issues of a localized smoking ban where patrons have access to neighboring substitute establishments that are not subject to such restrictions.
Peter Von Allmen
This article investigates the multiplier model in the context of the local impact of expenditures on sports infrastructure. There are two fundamental reasons for the lack of empirical evidence of large multiplier effects: inflated estimates of the direct effects, or the “base” increase in spending; and leakage from the local economy that diminishes the multiplier. The appropriate base expenditure of hosting a team in a city is the net new spending on local incomes and businesses plus local taxes paid. The effect of tax rates on the multiplier is less ambiguous. The full-time employment benefits are small, as the ratio of part-time to full-time employment is roughly ten to one. The role of government in stimulating economic growth has always been the subject of debate in macroeconomics. Local economic impact studies argue that stadium projects and playing host to a professional sports team are legitimate engines of economic growth.