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How Cable News Reshaped Local Government

Author

Listed:
  • Elliott Ash
  • Sergio Galletta

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.

Suggested Citation

  • Elliott Ash & Sergio Galletta, 2023. "How Cable News Reshaped Local Government," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 292-320, October.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:4:p:292-320
    DOI: 10.1257/app.20210501
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I20 - Health, Education, and Welfare - - Education - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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