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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 4 main newspapers in Argentina report government corruption in their front page during the period 1998-2007 and correlate them with the extent to which each newspaper is a recipient of government advertising. The correlation is negative. The size is considerable: a one standard deviation increase in monthly government advertising (0.26 million pesos of 2000) is associated with a reduction in the coverage of the government’s corruption scandals by 0.31 of a front page per month, or 25% of a standard deviation in our measure of coverage. The results are robust to the inclusion of newspaper, month, newspaper*president and individual-corruption scandal fixed effects as well as newspaper*president specific time trends.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15402.

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Date of creation: Oct 2009
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Publication status: published as Rafael Di Tella & Ignacio Franceschelli, 2011. "Government Advertising and Media Coverage of Corruption Scandals," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 119-51, October.
Handle: RePEc:nbr:nberwo:15402

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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. 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.
  4. 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.
  5. 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.
  6. 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.
  7. A. Blasco & F. Sobbrio, 2011. "Competition and Commercial Media Bias," Working Papers wp767, Dipartimento Scienze Economiche, Universita' di Bologna.
  8. 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.
  9. 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.
  10. Marco GAMBARO & Riccardo PUGLISI, 2009. "What do ads buy? Daily coverage of listed companies on the Italian press," Departmental Working Papers 2009-36, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  11. 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.

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