In spite of the inexorable march of democracy around the globe, just how democratic institutions a¤ect human well-being is open to debate. The evidence that democracy promotes prosperity is neither strong nor robust. Moreover which aspects of policy making and human well-being are promoted by

It has long been recognized that the media play an essential role in government accountability. Even in the absence of censorship, however, the government may influence news content by maintaining a “cozy” relationship with the media. This paper develops a model of democratic politics in which media capture is endogenous. The model offers insights into the features of the media market that determine the ability of the government to exercise such capture and hence to influence political outcomes.