How the death of your local newspaper could cost you money

A MarketWatch article looking at the impact of massive layoffs at the New York Daily News cites finance professor Paul Gao's research on what happens to public spending when a community's newspaper closes.

 “Local newspapers hold their governments accountable,” the researchers wrote. “The loss of monitoring that results from newspaper closures is associated with increased government inefficiencies.

In New York City, where 50% of the Daily News editorial staff was laid off this week, less local coverage will almost certainly mean less reporting about how city taxpayers’ money is being spent or, in some cases, wasted.