* We thank John Lovett and Mike Naber for their valuable research assistance at different stages of the project. We also thank Gabe Lenz, Maria Petrova, Glenn Richardson and three anonymous referees for their helpful comments. The paper was previously circulated under the title "Media Coverage of Political Scandals".

seminar participants at Bristol, Cambridge, Columbia, Durham, Rome (Ente Einaudi), LSE, MIT, Milan, Suffolk, the World Meeting of the Public Choice Societies (Amsterdam) for helpful comments. We also give a very special thanks to Michael Naber for making the data collection possible. AbstractWe study the agenda-setting political behavior of a large sample of U.S. newspapers during the last decade, and the behavior of smaller samples for longer time periods. Our purpose is to examine the intensity of coverage of economic issues as a function of the underlying economic conditions and the political affiliation of the incumbent president, focusing on unemployment, inflation, the federal budget and the trade deficit. We investigate whether there is any significant correlation between the endorsement policy of newspapers, and the differential coverage of bad/good economic news as a function of the president's political affiliation. We find evidence that newspapers with pro-

seminar participants at Bristol, Cambridge, Columbia, Durham, Rome (Ente Einaudi), LSE, MIT, Milan, Suffolk, the World Meeting of the Public Choice Societies (Amsterdam) for helpful comments. We also give a very special thanks to Michael Naber for making the data collection possible. AbstractWe study the agenda-setting political behavior of a large sample of U.S. newspapers during the last decade, and the behavior of smaller samples for longer time periods. Our purpose is to examine the intensity of coverage of economic issues as a function of the underlying economic conditions and the political affiliation of the incumbent president, focusing on unemployment, inflation, the federal budget and the trade deficit. We investigate whether there is any significant correlation between the endorsement policy of newspapers, and the differential coverage of bad/good economic news as a function of the president's political affiliation. We find evidence that newspapers with pro-

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