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On the U.S. Budget Deficit Dilemma: Has Television Contributed?

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  • Ali F. Darrat
  • Bill P. Bowers

Abstract

We advance several theoretical reasons for arguing that expansion in television viewership may have contributed to the recent escalation in the U.S. budget deficit. We then develop a multivariate model to test the validity of the hypothesis using alternative measures of television viewership. The empirical results could not reject our contention that the fast evolution of the U.S. television viewership since the early 1970s has significantly contributed to the escalating size of the federal budget deficit over and above the effects of several other possible macro determinants. This evidence provides some support to the claim that there exists a “liberal†bias within the media (particularly television) that undermines fiscal conservatism. Therefore, it appears advisable for policy-makers to take into account the role of television if they aspire to understand and ultimately control the mounting federal budget deficit.

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  • Ali F. Darrat & Bill P. Bowers, 1996. "On the U.S. Budget Deficit Dilemma: Has Television Contributed?," The American Economist, Sage Publications, vol. 40(2), pages 77-85, October.
    • Handle: RePEc:sae:amerec:v:40:y:1996:i:2:p:77-85
    DOI: 10.1177/056943459604000210
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