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The Sound of Silence: Anti-Defamation Law and Political Corruption

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  • Gabriele Gratton

    (School of Economics, The University of New South Wales)

Abstract

I study a model of political agency where a media firm plays a monitoring role between the electorate and the politician. The analysis focuses on the design of a legal framework for the press such that corruption is minimized. I find that an antidefamation law punishing media that publish false scandals reduces corruption only if (i) the punishment for the defamer is large enough to deter the publication of some true scandals and (ii) the electorate can punish the politician when no scandal is published.

Suggested Citation

  • Gabriele Gratton, 2012. "The Sound of Silence: Anti-Defamation Law and Political Corruption," Discussion Papers 2012-21, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2012-21
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2012-21.pdf
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    References listed on IDEAS

    as
    1. Djankov, Simeon & McLiesh, Caralee & Nenova, Tatiana & Shleifer, Andrei, 2003. "Who Owns the Media?," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 341-381, October.
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    4. Matthew Gentzkow & Jesse M. Shapiro, 2006. "Media Bias and Reputation," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 280-316, April.
    5. Antle, R, 1984. "Auditor Independence," Journal of Accounting Research, Wiley Blackwell, vol. 22(1), pages 1-20.
    6. Claudio Ferraz & Frederico Finan, 2008. "Exposing Corrupt Politicians: The Effects of Brazil's Publicly Released Audits on Electoral Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 703-745.
    7. Strömberg, David & Prat, Andrea, 2011. "The Political Economy of Mass Media," CEPR Discussion Papers 8246, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    media and democracy; corruption; defamation; chilling effect.;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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