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American Economic Journal: Applied Economics: Vol. 3 No. 4 (October 2011)

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Government Advertising and Media Coverage of Corruption Scandals

Article Citation

Di Tella, Rafael, and Ignacio Franceschelli. 2011. "Government Advertising and Media Coverage of Corruption Scandals." American Economic Journal: Applied Economics, 3(4): 119-51.

DOI: 10.1257/app.3.4.119

Abstract

We construct measures of the extent to which the four main newspapers in Argentina report government corruption on their front page during the period 1998-2007 and correlate them with government advertising. The correlation is negative. The size is considerable—a one standard deviation increase in monthly government advertising is associated with a reduction in the coverage of the government's corruption scandals of 0.23 of a front page per month, or 18 percent of a standard deviation in coverage. The results are robust to the inclusion of newspaper, month, newspaper Χ president and individual-corruption scandal fixed effects, as well as newspaper Χ president specific time trends. (JEL D72, K42, L82, M37, O17)

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Authors

Di Tella, Rafael (Harvard U)
Franceschelli, Ignacio (Northwestern U)

JEL Classifications

D72: Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
K42: Illegal Behavior and the Enforcement of Law
L82: Entertainment; Media
M37: Advertising
O17: Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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