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Meet the Press: How Voters and Politicians Respond to Newspaper Entry and Exit
Francesco Drago, Tommaso Nannicini, and Francesco Sobbrio
American Economic Journal: Applied Economics. Jul 2014, Vol. 6, No. 3: Pages 159-188

Meet the Press: How Voters and Politicians Respond to Newspaper Entry and Exit†

Francesco Drago1, Tommaso Nannicini2, and Francesco Sobbrio3

1Department of Economics, University of Naples, Federico II, Via Cintia Monte S. Angelo, 80126, Napoli, Center for Studies in Economics and Finance (CSEF), and Institute for the Study of Labor (IZA) (e-mail: )

2Department of Economics, Bocconi University, Via Roentgen 1, 20136 Milan, Italy, Innocenzo Gasparini Institute for Economic Research (IGIER), and IZA (e-mail: )

3Department of Economics and Finance, Catholic University of Milan, Largo Gemelli 1, 20123 Milan, Italy (e-mail: )

Abstract

This paper uses an original dataset covering the presence of local news in medium-large Italian cities in the period 1993–2010 to evaluate the effects of newspaper entry and exit on electoral participation, political selection, and government efficiency. Exploiting discrete changes in the number of newspapers, we show that newspaper entry increases turnout in municipal elections, the reelection probability of the incumbent mayor, and the efficiency of the municipal government. We do not find any effect on the selection of politicians. Competition plays a relevant role, as the effects are not limited to the first newspaper entry. (JEL D72, L11, L82)