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Government Advertising and Media Coverage of Corruption Scandals

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  • Rafael Di Tella
  • Ignacio Franceschelli

Abstract

We construct measures of the extent to which the four main newspapers in Argentina report government corruption on their front page during the period 1998-2007 and correlate them with government advertising. The correlation is negative. The size is considerable—a one standard deviation increase in monthly government advertising is associated with a reduction in the coverage of the government's corruption scandals of 0.23 of a front page per month, or 18 percent of a standard deviation in coverage. The results are robust to the inclusion of newspaper, month, newspaper Χ president and individual-corruption scandal fixed effects, as well as newspaper Χ president specific time trends. (JEL D72, K42, L82, M37, O17)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/app.3.4.119
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 3 (2011)
Issue (Month): 4 (October)
Pages: 119-51

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Handle: RePEc:aea:aejapp:v:3:y:2011:i:4:p:119-51

Note: DOI: 10.1257/app.3.4.119
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References

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Citations

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Cited by:
  1. Kalenborn, Christine & Lessmann, Christian, 2013. "The impact of democracy and press freedom on corruption: Conditionality matters," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 857-886.
  2. Prat, Andrea & Strömberg, David, 2011. "The Political Economy of Mass Media," CEPR Discussion Papers 8246, C.E.P.R. Discussion Papers.
  3. A. Blasco & P. Pin & F. Sobbrio, 2011. "Paying Positive to Go Negative: Advertisers' Competition and Media Reports," Working Papers wp772, Dipartimento Scienze Economiche, Universita' di Bologna.
  4. Marco Gambaro and Riccardo Puglisi, 2010. "What Do Ads Buy? Daily Coverage of Listed Companies on the Italian Press," RSCAS Working Papers 2010/26, European University Institute.
  5. Arvind K. Jain, 2011. "Corruption: Theory, Evidence and Policy," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(2), pages 3-9, 07.
  6. Ardanaz, Martín & Leiras, Marcelo & Tommasi, Mariano, 2014. "The Politics of Federalism in Argentina and its Implications for Governance and Accountability," World Development, Elsevier, vol. 53(C), pages 26-45.
  7. Goel, Rajeev K. & Nelson, Michael A., 2013. "Effectiveness of whistleblower laws in combating corruption," BOFIT Discussion Papers 9/2013, Bank of Finland, Institute for Economies in Transition.
  8. Matthew Gentzkow & Nathan Petek & Jesse M. Shapiro & Michael Sinkinson, 2012. "Do Newspapers Serve the State? Incumbent Party Influence on the US Press, 1869-1928," NBER Working Papers 18164, National Bureau of Economic Research, Inc.
  9. Di Tella, Rafael & Galiani, Sebastian & Schargrodsky, Ernesto, 2012. "Reality versus propaganda in the formation of beliefs about privatization," Journal of Public Economics, Elsevier, vol. 96(5), pages 553-567.
  10. A. Blasco & F. Sobbrio, 2011. "Competition and Commercial Media Bias," Working Papers wp767, Dipartimento Scienze Economiche, Universita' di Bologna.
  11. Martin Ardanaz & Marcelo Leiras & Mariano Tommasi, 2012. "The Politics of Federalism in Argentina: Implications for Governance and Accountability," Research Department Publications 4781, Inter-American Development Bank, Research Department.

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