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Newspapers and Parties: How Advertising Revenues Created an Independent Press

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  • 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.

Suggested Citation

  • Maria Petrova, 2009. "Newspapers and Parties: How Advertising Revenues Created an Independent Press," Working Papers w0131, Center for Economic and Financial Research (CEFIR).
  • Handle: RePEc:cfr:cefirw:w0131
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    Cited by:

    1. Nikita Zakharov, 2017. "Does Corruption Hinder Investment? Evidence from Russian Regions," Discussion Paper Series 33, Department of International Economic Policy, University of Freiburg, revised Feb 2017.
    2. Prat, Andrea & Strömberg, David, 2011. "The Political Economy of Mass Media," CEPR Discussion Papers 8246, C.E.P.R. Discussion Papers.
    3. Petrova, Maria, 2012. "Mass media and special interest groups," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 17-38.
    4. Matthew Gentzkow & Jesse M. Shapiro & Michael Sinkinson, 2014. "Competition and Ideological Diversity: Historical Evidence from US Newspapers," American Economic Review, American Economic Association, vol. 104(10), pages 3073-3114, October.
    5. David Strömberg, 2015. "Media and Politics," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 173-205, August.
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    7. Blasco, Andrea & Sobbrio, Francesco, 2012. "Competition and commercial media bias," Telecommunications Policy, Elsevier, vol. 36(5), pages 434-447.
    8. 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 119-151, October.
    9. Julia Cage, 2014. "The Economics of the African Media," Sciences Po publications info:hdl:2441/5ut30aqjfo8, Sciences Po.
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