INCOME INEQUALITY,MEDIA FRAGMENTATION,AND INCREASED POLITICAL POLARIZATION |
| |
| Authors: | John V. Duca Jason L. Saving |
| |
| Affiliation: | 1. 1 21492251541 2149225194;2. Associate Director of Research and Vice President, Research Department, Federal Reserve Bank of Dallas, Dallas, TX 75265;3. Adjunct Professor of Economics, Southern Methodist University, Dallas, TX |
| |
| Abstract: | The increasing polarization of congressional voting has been linked to legislators' inability to reach consensus on many pressing economic issues. We examine two potential factors driving polarization: greater income inequality and the increasingly fragmented state of American media. Using cointegration techniques, we find evidence indicating that media fragmentation has played a more important role than inequality. Periods of rising media fragmentation are followed by increased polarization. If recent patterns of media structure and income inequality persist, a polarized policymaking environment will likely continue to impede efforts to address major challenges, such as the long‐run fiscal imbalances facing the United States. (JEL D72, D31) |
| |
| Keywords: | |
|
|
