Empirical essays on the roles of news media in an urban economy

Economists typically assume perfect information, but households are not always well informed, and face a high degree of uncertainty regarding the quality of goods or value of their assets. As a consequence, information from mass media is a main part of our everyday lives. Coverage in popular media outlets can catch the attention of millions of households and, therefore, news media may influence their decisions in several ways. This thesis investigates the roles of news media in an urban economy and for housing markets. Each of the three empirical essays provides insights into how information from the media can shape the economic decisions of households as either homebuyers, homeowners, or consumers. While the first and the second chapters estimate the causal effects of publicity, in particular positive information, on house prices and non-housing consumption, respectively, the last chapter explores how media coverage may affect the link between house prices and homeowner spending. This thesis places particular emphasis on understanding the mechanisms through which news media may affect economic outcomes by empirically identifying potential channels.