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Media Capture and Local Government Accountability

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  • Jiancai Pi

Abstract

This paper mainly discusses the effects of media capture on local government accountability in undemocratic countries. Firstly, we construct the models with and without media capture from the perspective of incentive theory. Secondly, we conduct a comparative analysis between the outcomes with and without media capture. The analysis shows that no media capture decreases the local official's equilibrium efficiency wage under whatever conditions, and at the same time makes the central government's constraint to incentivize the local official to exert effort easier to be satisfied under some conditions, while harder to be satisfied under other conditions.

Suggested Citation

  • Jiancai Pi, 2010. "Media Capture and Local Government Accountability," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(3), pages 273-283.
    • Handle: RePEc:prg:jnlpep:v:2010:y:2010:i:3:id:376:p:273-283
    DOI: 10.18267/j.pep.376
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    References listed on IDEAS

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    1. Djankov, Simeon & McLiesh, Caralee & Nenova, Tatiana & Shleifer, Andrei, 2003. "Who Owns the Media?," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 341-381, October.
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    More about this item

    Keywords

    moral hazard; media capture; government accountability; efficiency wage; central government; local government;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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