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How Cable News Reshaped Local Government

  • Elliott Ash
  • Sergio Galletta
American Economic Journal: Applied Economics
vol. 15, no. 4, October 2023
(pp. 292-320)
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Abstract

This paper shows that partisan cable news broadcasts have a causal effect on the size and composition of budgets in US localities. Using exogenous channel positioning as an instrument for viewership, we show that exposure to the conservative Fox News channel reduces revenues and expenditures. Multiple mechanisms drive these results: Fox News improves election chances for local Republicans, alters politician campaign agendas, and shifts voter policy preferences on fiscal issues. Consistent with the priorities of small-government conservatism, we find evidence that private provision compensates for the reduced public services. The "Fox News effect" extends beyond vote shares to rightward policy shifts.

Citation

Ash, Elliott, and Sergio Galletta. 2023. "How Cable News Reshaped Local Government." American Economic Journal: Applied Economics, 15 (4): 292-320. DOI: 10.1257/app.20210501

Additional Materials

JEL Classification

  • D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • H71 State and Local Taxation, Subsidies, and Revenue
  • H72 State and Local Budget and Expenditures
  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I20 Education and Research Institutions: General
  • L82 Entertainment; Media
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