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Project Description

Summary:  View help for Summary This paper shows that partisan cable news broadcasts have a causal effect on the size and composition of budgets in U.S. localities. Using exogenous channel positioning as an instrument for viewership, we show that exposure to the conservative Fox News Channel reduces both revenues and expenditures. Multiple mechanisms drive these results: Fox News improves election chances for local Republicans, alters politician campaign agendas, and directly shifts voter policy preferences on fiscal issues. Consistent with the priorities of small-government conservatism, we find evidence that the reduction in public services is compensated by increased private provision, in particular through higher student attendance at private schools. The "Fox News Effect" is not just limited to vote shares; it also moves policy to the right.

Scope of Project

Subject Terms:  View help for Subject Terms public budget; partisan media; local governments
JEL Classification:  View help for JEL Classification
      D70 Analysis of Collective Decision-Making: General
      H70 State and Local Government; Intergovernmental Relations: General
      L82 Entertainment; Media
Geographic Coverage:  View help for Geographic Coverage United States

Methodology

Geographic Unit:  View help for Geographic Unit counties, places

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