Decline of Local Press Leads to Higher City Borrowing Costs

An extraordinary new study by University of Illinois at Chicago and University of Notre Dame researchers finds that the cost of U.S. municipal borrowing goes up by as much as a tenth of a percentage point following closure of a local newspaper.  A key reason: “the investigative journalism gap left when a local newspaper shuts down.” According to the study, “potential lenders have greater difficulty evaluating the quality of public projects and the government officials in charge of these projects.” 

Source: Nonprofit Quarterly

Posted on: July 28, 2018