How Cable News Reshaped Local Government

Elliott Ash and Sergio Galletta

American Economic Journal: Applied Economics, 2023, vol. 15, issue 4, 292-320

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.

JEL-codes: D72 H71 H72 H75 I20 L82 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1257/app.20210501

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