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 classification: L82, D72, H70.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu This paper evaluates the effects of changes in the supply of news provided by newspapers on electoral participation, political selection, and government efficiency. We address these issues in the Italian context by constructing a new dataset covering the presence of local news by different types of newspapers (i.e., local and national) for all cities above 15,000 inhabitants in the period 1993-2010. The identification strategy exploits discrete changes in the number of newspapers supplying local news and the precise timing of these events. The results show that the entry of newspapers in the market for local news leads to an increase in turnout in municipal elections, a higher probability of the incumbent mayor being reelected, and an improvement in the efficiency of the municipal government (as measured by the speed of revenue collection). The effect of newspapers on government efficiency is larger when mayors are not term-limited and thus face reelection incentives. Our evidence shows that newspapers do not have a major impact on the selection of politicians, but they play a relevant role in keeping politicians accountable once they are in office. Competition plays a relevant role, as the effects are not limited to the first newspaper entering the market. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: L82, D72, H70
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