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Newspapers and Parties: How Advertising Revenues Created an Independent Press

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Author Info
Maria Petrova () (New Economic School)
Abstract

Does economic development promote media freedom? Do higher advertising revenues tend to make media outlets independent of political groups?in?uence? Using data on the 19th century American newspapers, I show that in places with higher advertising revenues, newspapers were more likely to be independent from political parties. Similar results hold when local advertising rates are instrumented by regulations on outdoor advertising and newspaper distribution. I also show that newly created newspapers were more likely to enter the market as independents in markets with higher advertising rates.

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Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0131.

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Length: 47 pages
Date of creation: Aug 2009
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Handle: RePEc:cfr:cefirw:w0131

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  2. Brunetti, Aymo & Weder, Beatrice, 2003. "A free press is bad news for corruption," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1801-1824, August. [Downloadable!] (restricted)
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  5. Jonathan Reuter & Eric Zitzewitz, 2006. "Do ADS Influence Editors? Advertising and Bias in the Financial Media," The Quarterly Journal of Economics, MIT Press, vol. 121(1), pages 197-227, 02. [Downloadable!] (restricted)
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  6. Randall S. Kroszner & Philip E. Strahan, 1999. "What Drives Deregulation? Economics And Politics Of The Relaxation Of Bank Branching Restrictions," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1437-1467, November. [Downloadable!] (restricted)
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  8. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September. [Downloadable!]
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  11. Nevo, Aviv, 2001. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Econometrica, Econometric Society, vol. 69(2), pages 307-42, March.
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  12. Gerber, Alan & Karlan, Dean & Bergan, Daniel, 2006. "Does The Media Matter? A Field Experiment Measuring the Effect of Newspapers on Voting Behavior and Political Opinions," Working Papers 12, Yale University, Department of Economics. [Downloadable!]
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  13. Andrew Sweeting, 2008. "The Strategic Timing Incentives of Commercial Radio Stations: An Empirical Analysis Using Multiple Equilibria," NBER Working Papers 14506, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence from Russia," Journal of Finance, American Finance Association, vol. 63(3), pages 1093-1135, 06. [Downloadable!] (restricted)
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  19. Stefano DellaVigna & Ethan Kaplan, 2007. "The Fox News Effect: Media Bias and Voting," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1187-1234, 08. [Downloadable!] (restricted)
  20. Petrova, Maria, 2008. "Inequality and media capture," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 183-212, February. [Downloadable!] (restricted)
  21. Andrew Sweeting, 2006. "Coordination, Differentiation, and the Timing of Radio Commercials," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 15(4), pages 909-942, December. [Downloadable!] (restricted)
  22. Ritva Reinikka & Jakob Svensson, 2005. "Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 259-267, 04/05. [Downloadable!] (restricted)
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  24. Pradeep K. Chintagunta & Vrinda Kadiyali & Naufel J. Vilcassim, 2006. "Endogeneity and Simultaneity in Competitive Pricing and Advertising: A Logit Demand Analysis," Journal of Business, University of Chicago Press, vol. 79(6), pages 2761-2788, November. [Downloadable!]
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  27. David Str–mberg, 2004. "Mass Media Competition, Political Competition, and Public Policy," Review of Economic Studies, Blackwell Publishing, vol. 71(1), pages 265-284, 01. [Downloadable!] (restricted)
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