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Newspapers and Parties: How Advertising Revenues Created an Independent Press

  • Maria Petrova

    ()

    (New Economic School)

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
Date of revision:
Handle: RePEc:cfr:cefirw:w0131
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