This article provides a review of recent literature in economics on the effect of mass media on politics. The focus is on the welfare effects of mass media. I also discuss the likely implications of existing behavioral theories of media effects, developed outside of economics.

How does politics affect economic outcomes? This question has been asked probably as long as people have been interested in economics itself. Ž From Adam Smith’s Wealth of Nations in 1776 or perhaps the Physiocrats . even earlier until at least John Stuart Mill’s Principles of Political Economy in 1848, what we now call ‘‘economics’’ was in fact generally referred to as ‘‘political economy.’’ T...

In the process of transition from old institutionalism to new institutionalism, theoretical foundation of old institutionalism was gradually enlarged and more research approaches were integrated. Firstly, rational aspects of behavioristic politics as borrowed. Then, its epistemology, its research target and research level are expanded. Finally, relevant theories of economics, sociology and hist...