A study (inspired by a John Oliver segment about the decline of local newspapers) looked at data from 1,266 counties and found that the loss of watchdogs leads to less efficient government. The Guardian:
The researchers concluded that Rocky Mountain News stories had served as a watchdog agent. Without it, the spread or yield of newly issued local municipal bonds increased by 37 basis points… The researchers also looked at the Cincinnati Post, which closed in 2007. In that instance too, the median yield spread for newly issued local municipal bonds increased by about 66.1 basis points – another indication, according to the authors, that public finances suffer when a newspaper closes.