Fox News and Political Knowledge Elizabeth Schroeder Oregon State University Schroeder and Stone (Oregon State University Daniel F. Stone Bowdoin College October 2014 Fox Bowdoin News and College) Political Knowledge October 2014 1 / 19 Motivation Media bias exists (ideological horizontal di¤erentiation) (Groseclose and Milyo, QJE, 2005; Gentzkow and Shapiro, Ecta, 2010) But is bias bad? Not necessarily (Gentzkow, Shapiro and Stone, Handbook of Media Economics chapter in preparation) Empirically: Does bias decrease/increase knowledge? Not much literature here (beyond correlations) We contribute by studying Fox News. Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 2 / 19 E¤ects on voting DellaVigna and Kaplan (QJE 2007) Fox News led to 0.4-0.7% increase in voting Republican Identi…ed by gradual, quasi-random rollout. Hopkins and Ladd (forthcoming), Martin and Yurukoglu (2014) Why? One potential channel - knowledge e¤ects. Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 3 / 19 Does bias decrease/increase knowledge? Theory is ambiguous. Table 2: Mechanisms identi…ed by theory literature by which partisan news outlets can a¤ect voter knowledge Mechanism E¤ect Representative Paper 1. Cross-checking: + Mullainathan and Shleifer (2005) biased outlet reports novel information that complements other news 2. Rational delegation: + Chan and Suen (2008) biased outlet acts as an optimal advisor for partisan consumers, who (rationally) would be unpersuaded to change action by neutral outlet 3. Market expansion: + Burke (2008) biased outlet reaches consumers who otherwise would get no news 4. Entertainment and belief-con…rmation utility: Bernhardt, Krasa, Polborn (2008) consumers enjoy biased news despite knowing it is uninformative 5. Irrational delegation: Stone (2011) biased consumers falsely think biased outlet gives better advice than neutral outlet 6. Supply-side, monopoly market: Anderson and McLaren (2012) outlet uses bias to attempt to manipulate audience 7. Supply-side, competitive market w/obfuscation: DellaVigna and Kaplan (2007) consumers unwittingly obtain biased news due to naivete/ignorance Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 4 / 19 Stylized Model Voters: Preferences for information (belief-changing) and political preference a¢ rmation. News Outlet: Objective function includes voting in‡uence and direct pro…ts Can report factual news or cheap talk report on valence of candidates Predictions: Increase knowledge for policy issues that are favorable to Republicans more so when beliefs would otherwise be inaccurate. Decrease knowledge on issues favorable to Democrats. All e¤ects greatest for non-Democrats (most likely to watch) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 5 / 19 Data Knowledge data: The National Annenberg Election Survey (NAES) Conducted each presidential election year, starting 2000 In 2000, 58,373 interviews; in 2004, 81,422; in 2008, 57,967. Hopkins and Ladd (2012) use to study 2000 voting e¤ects (HL) Demographic, political/ideological/attitude, media consumption (no Fox in 2000) Merge with: Census ZCTA (zip) level demographic data for 2000, 2010, linear interpolation for 04 and 08 (population, race, education, income, employment) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 6 / 19 Each poll includes 20+ interesting questions on political (mostly campaign) issues with factual answers Who favors doubling the amount families can deduct from their income tax for each child they have, George W. Bush or Al Gore? (Bush) Who favors paying down the national debt the most, George W. Bush or Al Gore? (Gore) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 7 / 19 Each poll includes 20+ interesting questions on political (mostly campaign) issues with factual answers Who favors doubling the amount families can deduct from their income tax for each child they have, George W. Bush or Al Gore? (Bush) Who favors paying down the national debt the most, George W. Bush or Al Gore? (Gore) John Kerry says that he would eliminate George W. Bush’s tax cuts on those making how much money - over $50,000 a year; over $100,000 a year; over $200,000 a year; or over $500,000 a year? ($200,000) Who favors the Medicare prescription drug law that was recently enacted - George W. Bush, John Kerry, both or neither? (Bush) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 7 / 19 Each poll includes 20+ interesting questions on political (mostly campaign) issues with factual answers Who favors doubling the amount families can deduct from their income tax for each child they have, George W. Bush or Al Gore? (Bush) Who favors paying down the national debt the most, George W. Bush or Al Gore? (Gore) John Kerry says that he would eliminate George W. Bush’s tax cuts on those making how much money - over $50,000 a year; over $100,000 a year; over $200,000 a year; or over $500,000 a year? ($200,000) Who favors the Medicare prescription drug law that was recently enacted - George W. Bush, John Kerry, both or neither? (Bush) Which candidate(s) is proposing a health care reform plan that mandates that children have health insurance: John McCain, Barack Obama, both, or neither? (Obama) Which candidate(s) would provide individuals $2,500 or families $5,000 to help them buy their own health insurance: John McCain, Barack Obama, both, or neither? (McCain) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 7 / 19 Fox and cable data Cable is local natural monopoly. Highly decentralized Fox News began in October, 1996; main (stated) goal to grow subscribers as quickly as possible (Collins, 2004) DK data: Fox availability in 2000 and 2003 for around 20,000 towns, 33 states Also: number channels in 2000; cable system in 2000, 2003 Collected from annual industry factbooks We add FNC access data from factbooks and number of channels for 2004 and 2008 Updating issue We look at 4 year intervals Dynamic e¤ects Voting e¤ects not too di¤erent Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 8 / 19 Summary stats Fox Knowledge Qs % Correct n Schroeder and Stone (Oregon State University 2000 0.238 13.44 0.461 31,717 2004 0.774 9.62 0.542 25,856 2008 0.957 9.15 0.533 27,720 Fox Bowdoin News and College) Political Knowledge October 2014 9 / 19 Power, data integrity and exogeneity Investigate power by checking treatment e¤ects we know should occur 1) Voting Repub (2000 especially); 2) Watching Fox (questions in 04 and 08 only) Verify that we can detect e¤ects. (Voting 2% in 2000, 1% in pooled data) Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 10 / 19 Power, data integrity and exogeneity Investigate power by checking treatment e¤ects we know should occur 1) Voting Repub (2000 especially); 2) Watching Fox (questions in 04 and 08 only) Verify that we can detect e¤ects. (Voting 2% in 2000, 1% in pooled data) Exogeneity of Fox access? DK: yes (in 2000), with congressional district or county FEs (and other controls) HL: yes (in 2000), with state FEs (+ controls) We verify holds in all years, and check relation to education Foxi = δv Vi + δE Ei + βXi + ei Some evidence of small e¤ect of education on FNC access in 2000 and 2004. Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 10 / 19 Knowledge analysis Iij = δj Foxi + Xi βj + αj + eij . Iij is dummy, equal to one if i answers question j correctly Xi = respondent-speci…c controls; αj is question-speci…c constant, captures question’s di¢ Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 culty 11 / 19 Knowledge analysis Iij = δj Foxi + Xi βj + αj + eij . Iij is dummy, equal to one if i answers question j correctly Xi = respondent-speci…c controls; αj is question-speci…c constant, captures question’s di¢ We observe: yij = dij Iij ; with dij a dummy equal to one if respondent i Schroeder and Stone (Oregon State University asked question Fox Bowdoin News and College) Political Knowledge culty j; and ni = ∑j dij October 2014 11 / 19 Knowledge analysis Iij = δj Foxi + Xi βj + αj + eij . Iij is dummy, equal to one if i answers question j correctly Xi = respondent-speci…c controls; αj is question-speci…c constant, captures question’s di¢ We observe: yij = dij Iij ; with dij a dummy equal to one if respondent i So estimate: yi = 1 ni asked question culty j; and ni = ∑j dij 1 ∑ dij Iij = eδFoxi + Xi eβ + ni ∑ dij αj + eei . j Schroeder and Stone (Oregon State University j Fox Bowdoin News and College) Political Knowledge October 2014 11 / 19 Speci…c knowledge Model prediction: Positive/larger e¤ects on issues more favorable to Rs. Exploit survey questions on respondents’own policy preferences. Ex: "Do you personally favor or oppose requiring a license for a person to buy a handgun?" Code as pro-R if over half of likely viewers (non-Democrats) with a preference prefer R position or are opposed to D position. Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 12 / 19 Speci…c knowledge Model prediction: Positive/larger e¤ects on issues more favorable to Rs. Exploit survey questions on respondents’own policy preferences. Ex: "Do you personally favor or oppose requiring a license for a person to buy a handgun?" Code as pro-R if over half of likely viewers (non-Democrats) with a preference prefer R position or are opposed to D position. E¤ect should be proportional to percentage of people who are "persuadable" or "treatable". \ = 1 y ij , the fraction of For pro-R questions, treatable non-Democrats with Fox=0 who got question j wrong. \ = yi , For anti-R questions, treatable Schroeder and Stone (Oregon State University j Fox Bowdoin News and College) Political Knowledge October 2014 12 / 19 Informativeness Model prediction: Heterogeneous e¤ects due to choice of issues to cover. Examine transcripts from FNC programs. The O’Reilly Factor and Special Report with Brit Hume Randomly chosen transcripts Use keywords to identify potentially relevant content. Use workers from Mechanical Turk and our own judgment to code content: misleading, irrelevant, informative. TInfo: mean 0.47, max 4, min -1. Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 13 / 19 Results: All knowledge questions Dependent variable: % questions answered correctly 2000 only Foxi Adjusted R 2 N Y-mean 2004 only Foxi Adjusted R 2 N Y-mean 2000-04-08 Foxi Adjusted R 2 N Y-mean State FE County FE Non-Democrat Low Channels (1) (2) (3) (4) (5) (6) -0.343 (0.383) 0.253 29912 47.297 -0.096 (0.549) 0.261 29912 47.297 -0.256 (0.450) 0.248 20659 46.420 -0.449 (0.741) 0.258 20659 46.420 -2.293** (1.153) 0.245 14759 46.570 0.957 (2.121) 0.259 14759 46.570 1.050** (0.480) 0.354 22929 53.099 0.893 (0.759) 0.363 22929 53.099 1.241** (0.566) 0.354 15656 52.473 1.149 (0.888) 0.367 15656 52.473 1.487*** (0.563) 0.353 11584 51.997 1.803* (0.979) 0.365 11584 51.997 0.068 (0.273) 0.301 79285 50.742 X -0.166 (0.310) 0.305 79285 50.742 0.123 (0.313) 0.299 53512 50.127 X 0.113 (0.363) 0.303 53512 50.127 0.373 (0.370) 0.297 38318 49.936 X 0.446 (0.508) 0.305 38318 49.936 X X Schroeder and Stone (Oregon State University X X X X Fox Bowdoin News and College) Political Knowledge X October 2014 14 / 19 Results: "persuasion rates" 2000 only \ i Foxi treatable Adjusted R 2 N Y-mean 2004 only \ i Foxi treatable Adjusted R 2 N Y-mean 2000-04-08 \ i Foxi treatable Adjusted R 2 N Y-mean Non-Democrat Low Channels Follow News \ i = (1 ȳji )) Pro-Repub Questions (treatable (1) (2) (3) (4) \ i = ȳji ) Anti-Repub Questions (treatable (5) (6) (7) (8) 4.880 (3.059) 0.188 23880 64.758 1.018 (3.924) 0.197 16580 66.664 -8.870 (9.892) 0.190 11670 63.942 4.237 (3.628) ) 0.173 16627 72.258 -0.466 (1.383) 0.220 25236 46.107 -0.373 (1.876) 0.210 17474 44.749 2.227 (5.240) 0.220 12308 45.323 1.010 (1.735) 0.205 17674 50.476 7.208** (3.377) 0.211 14141 55.362 7.320* (3.931) 0.215 9597 56.028 11.818*** (4.297) 0.206 7081 54.270 8.555** (4.067) 0.185 10509 61.285 3.212 (2.600) 0.216 14141 54.491 3.889 (3.190) 0.199 9597 51.537 6.623** (3.272) 0.217 7081 52.952 -0.688 (2.946) 0.207 10509 58.718 2.175 (1.456) 0.213 52667 56.145 3.166* (1.669) 0.217 35682 57.205 X 3.169* (1.895) 0.209 25376 55.543 3.199* (1.708) 0.213 39830 60.831 -0.719 (0.862) 0.255 52346 48.894 0.026 (1.119) 0.244 35485 47.180 X 0.854 (1.546) 0.257 25236 47.920 -0.583 (0.948) 0.247 39407 53.495 Schroeder and Stone (Oregon State University X X Fox Bowdoin News and College) Political Knowledge X X October 2014 15 / 19 Results: Transcript informativeness 2000 only Foxi Foxi TInfoi Adjusted R 2 N 2004 only Foxi Foxi TInfoi Adjusted R 2 N 2000-04-08 Foxi Foxi TInfoi (1) (2) (3) (4) (5) (6) (7) (8) -1.475** (0.698) 2.518* (1.406) 0.253 29912 -1.207 (0.827) 2.441* (1.440) 0.261 29912 -2.347*** (0.869) 4.667*** (1.723) 0.248 20659 -2.637** (1.090) 4.853*** (1.794) 0.258 20659 1.004 (3.640) -7.505 (8.195) 0.245 14759 7.097 (4.880) -13.774 (9.565) 0.259 14759 -1.553* (0.803) 3.137** (1.541) 0.235 20831 -1.298 (0.991) 3.614** (1.602) 0.248 20831 0.828 (0.772) 0.249 (0.671) 0.354 22929 0.504 (1.035) 0.404 (0.735) 0.363 22929 0.916 (0.874) 0.363 (0.769) 0.354 15656 0.711 (1.222) 0.454 (0.878) 0.367 15656 1.324 (0.914) 0.190 (0.815) 0.353 11584 1.454 (1.277) 0.389 (0.917) 0.365 11584 1.023 (0.878) -0.365 (0.762) 0.345 15506 0.526 (1.210) -0.166 (0.857) 0.354 15506 -0.910** (0.418) 1.649*** (0.569) 0.301 79285 X -1.155*** (0.437) 1.624*** (0.575) 0.305 79285 -1.308** (0.511) 2.409*** (0.697) 0.299 53512 X -1.254** (0.566) 2.247*** (0.708) 0.304 53512 -0.895 (0.739) 1.720* (0.880) 0.297 38318 X -0.533 (0.884) 1.284 (0.945) 0.305 38318 -0.528 (0.449) 1.098* (0.602) 0.280 58847 X -0.781 (0.485) 1.019* (0.599) 0.285 58847 X X Adjusted R 2 N State FE County FE Non-Democrat Low Channels News State University Schroeder and Follow Stone (Oregon X X X X Fox Bowdoin News and College) Political Knowledge X X 2014 October X X16 / 19 Discussion Individual e¤ects 95% con…dence intervals for full sample both fall within [-0.77, 0.60] DK: Foxi causes 3% increase in watching Fox ‘a lot’; 9% in watching Fox ‘a little’ Roughly, implies 95% interval of knowledge e¤ects of [-31%,23%] for those who watch a lot And [-9.0%,7.0%] for those who watch a little Both are arguably small We are interested in aggregate e¤ects anyway (incorporating spill-overs) - which are obviously even smaller Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 17 / 19 Results: Other outcomes 2000 only Foxi Adjusted R 2 N Y-mean 2004 only Foxi R2 Adjusted N Y-mean 2000, 2004, 2008 Foxi Adjusted R 2 N Y-mean County FE Newspaper Def. 1 Def. 2 (1) (2) Online News Def. 1 Def. 2 (3) (4) -0.132* (0.070) 0.185 29,874 3.879 -0.024** (0.011) 0.08 29,912 0.793 0.014 (0.047) 0.100 29,816 1.048 0.004 (0.010) 0.116 29,912 0.249 -0.024** (0.011) 0.169 29,744 0.700 -0.012 (0.011) 0.172 29,744 0.352 0.005 (0.086) 0.184 22,900 3.917 -0.005 (0.014) 0.085 22,929 0.784 0.109** (0.052) 0.093 22,883 0.827 0.020* (0.012) 0.111 22,929 0.226 -0.009 (0.014) 0.150 20,266 0.765 0.021 (0.015) 0.150 20,266 0.399 -0.027 (0.042) 0.191 79,081 3.620 -0.011* (0.006) 0.118 79,285 0.732 0.016 (0.026) 0.192 78,961 1.402 0.002 (0.005) 0.188 79,285 0.310 -0.008 (0.006) 0.159 76,322 0.771 0.004 (0.006) 0.153 76,322 0.391 Schroeder and Stone (Oregon State University Follow News Def. 1 Def. 2 (5) (6) Fox Bowdoin News and College) Political Knowledge October 2014 18 / 19 Conclusion FNC access did not have large e¤ects on political knowledge from 2000 to 2008 May have increased knowledge in 2004 Especially on topics favorable to Republicans (some evidence of this in other years as well). FNC access increased knowledge about topics on which it focused attention, and decreased knowledge on other issues. Variation across years E.g., FNC may have sparked more consumption of online news in 2004 Reasons our analysis could understate impact of Fox non-local spillovers in‡uence content of other news non-informative content that still a¤ects voting Schroeder and Stone (Oregon State University Fox Bowdoin News and College) Political Knowledge October 2014 19 / 19
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