# **Table 3: Instrumental Variables Estimates of the Impact of Formal Authority**

**Dependent Variable: Percentage of Project Completed in Column 1; Initiation Binary [yes=1] in Column 2; Completion Binary [yes=1] in Column 3; Quality Binary [satisfactory=1] in Column 4; Proportion/Quality Interaction in Column 5**

## **Robust Standard Errors**

||**(1) Proportion**<br>**Completed**|**(2) Project Starts**|**(3) Project**<br>**Completes**|**(4) Project Quality**|**(5) Quality-Adjusted**<br>**Completion Rate**|
|---|---|---|---|---|---|
|**Relevant Committee Membership [Member=1]**|0.09**|0.09**|0.06|-0.12**|-0.06|
||(0.04)|(0.04)|(0.04)|(0.06)|(0.05)|
||[0.02]|[0.04]|[0.14]|[0.04]|[0.28]|
|**Project and constituency controls**|Yes|Yes|Yes|Yes|Yes|
|**Mean of dependent variable**|0.50|0.63|0.37|0.81|0.65|
|**Adjusted R-squared**|0.35|0.29|0.32|0.17|0.23|
|**First Stage F-Statistic**|523|523|523|342|342|
|**Observations**|3,008|3,008|3,008|1,368|1,368|

**Notes** : *** denotes significance at 1%, ** at 5%, and * at 10% level.  Robust standard errors are in round brackets and associated p-values are in square brackets.  The dependant variable in Column 1 is the proportion of the project completed (that is a continuous measure between zero and one); in Columns 2 and 3 a binary variable that takes the value 1 if a project is initiated and completed respectively, and 0 otherwise; in Column 4 a binary variable that takes the value 1 if the project is deemed to be of satisfactory quality and zero otherwise; and, in Column 5 an interaction between the proportion of the project completed and the satisfactory quality binary.  Relevant Committee Membership is a binary variable that indicates whether the project is in a constituency and sector in which the corresponding House representative sits on the relevant sectoral committee, taking the value 1 if so and 0 otherwise.  Project controls are comprised of project-level controls for the log of the project budget; binary variables indicating whether the project is new or a rehabilitation, and whether it was implemented in 2006 or 2007; assessments of its aggregate complexity; national and local information requirements by Nigerian engineers; and sector and project type fixed effects.  Sector fixed effects relate to whether the project is in the Agriculture, Education, Environment, Health, Housing, Water or Female Empowerment sector.  Project type fixed effects relate to whether the primary classification of the project is as an advocacy, building, borehole, canal, dam, financial, procurement, research, road or training project.  Constituency characteristics are comprised of the means and standard deviations of the following indices: the proportion of poor in the constituency, measured by a national poverty index, the average years of education of the household head, the proportion of constituents with access to potable water, the average time in minutes to the nearest primary school, and the average time in minutes to the nearest secondary school.  Means and standard deviations of the following indices are also included to reflect the frequency with which constituents benefit from a public project of the named type in the five years preceding 2006: construction of electrification infrastructure, rehabilitation of electrification infrastructure, well/borehole, construction of piped water infrastructure, rehabilitation of piped water infrastructure, sanitation, school construction project, school rehabilitation, health facility construction, health facility rehabilitation, road construction, tarring/grading of roads, transportation services, and agricultural-inputs schemes.  Finally, constituency characteristics include a set of indicators of the economic dynamics of the constituency, comprised of indicators of improvements in opportunities for employment, the availability of agricultural inputs, number of buyers of agriculture produce, the availability of extension services, the availability of credit facilities, and the availability of consumer goods.  Figures are rounded to two decimal places.