Productivity Measurement in Gambling: Plant-Level Evidence from Gambling Establishments in the United Kingdom

42 Pages Posted: 11 May 2006

See all articles by David Paton

David Paton

Nottingham University Business School (NUBS)

Donald S. Siegel

Arizona State University

Leighton Vaughan Williams

Nottingham (Trent) Business School

Date Written: April 2006

Abstract

There have been numerous studies of the impact of investment in information technology (IT) on manufacturing productivity (e.g., Brynjolfsson and Hitt (1996)) and Morrison (1997)), but little evidence on this relationship in services. We attempt to fill this gap, by analyzing the impact of IT on the relative productivity of gambling establishments. Ours is also the first empirical study of productivity in gambling, one of the fastest growing industries in the service sector. The econometric analysis is based on data from the Annual Respondents Database (ARD) file, consisting of individual establishment records from the U.K. Annual Census of Production. The ARD file contains detailed data on output, materials, energy, employment, and numerous plant and firm characteristics and is quite similar to the U.S.-based Longitudinal Research Database (LRD). Production function models provide an excellent fit to the data, yielding plausible elasticity estimates and indicating constant returns to scale. More importantly, we find that gambling establishments investing more heavily in computers are more productive than comparable establishments.

Keywords: efficiency, productivity and measurement, technology

JEL Classification: D24, 033

Suggested Citation

Paton, David and Siegel, Donald S. and Vaughan Williams, Leighton, Productivity Measurement in Gambling: Plant-Level Evidence from Gambling Establishments in the United Kingdom (April 2006). Available at SSRN: https://ssrn.com/abstract=900540 or http://dx.doi.org/10.2139/ssrn.900540

David Paton (Contact Author)

Nottingham University Business School (NUBS) ( email )

Jubilee Campus
Wollaton Road
Nottingham NG8 1BB
United Kingdom
+44 0 115 8466601 (Phone)

Donald S. Siegel

Arizona State University ( email )

411 North Central
Phoenix, AZ 85004
United States
6024961101 (Phone)

Leighton Vaughan Williams

Nottingham (Trent) Business School ( email )

Burton Street
NG1 4BU Nottingham
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
113
Abstract Views
922
rank
273,629
PlumX Metrics