The Political Economy of the Media: Coverage of the Lumber Tariff Dispute

Abstract

The political economy of groups suggest that policies are more likely to be implemented if the benefits are concentrated and the costs are dispersed. The importance of the role of media in society changes the classic models. Media can awaken the sleeping masses to the dispersed costs of a policy and raise resentment towards the group who benefits. Thus, the content of media coverage can affect policy. Stromberg's (2001) model shows that the amount of newspaper space devoted to an issue should rise as the square of the number of people affected. This paper finds empirical support for Stromberg's theoretical findings with content analysis of newspaper coverage of the lumber tariff dispute.