# **Table A1: Variable Definitions, 4/5**

|**Variable name**|**Variable defnition and data source(s)**|
|---|---|
|**F.** **_Ex-ante_ risk characteristics **|**& other characteristics of declarations, continued**|
|Trade elasticity (Broda and Wein-<br>stein, 2006)|Weighted average trade elasticity of the items (i.e., products) included in the<br>declaration using elasticity estimates of Broda and Weinstein (2006) at the HS<br>3-digit level, with weights corresponding to the share of the total import value<br>each item accounts for. Defned at the declaration level. Source: Broda and<br>Weinstein (2006) and Madagascar customs.|
|Trade elasticity (Fontagne et al.<br>2022)|Weighted average trade elasticity of items (i.e., products) included in the dec-<br>laration using elasticity estimates of Fontagne et al. (2022) at the HS 6-digit<br>level, with weights corresponding to the share of the total import value each item<br>accounts for. Defned at the declaration level. Source: Fontagne et al. (2022) and<br>Madagascar customs|
|Relationship stickiness (Martin et<br>al. 2020)|Weighted average relationship stickiness of items (i.e., products) included in the<br>declaration using the measures of Martin et al. (2020) at the HS 6-digit level, with<br>weights corresponding to the share of the total import value each item accounts<br>for. Defned at the declaration level. Source: Martin et al. (2020) and Madagascar<br>customs|
|High potential tax yield dummy|Dummy variable that takes value 1 if the hypothetical tax burden associated with<br>valuing the declaration using external reference prices exceeds 20,000 USD. Defned<br>at the declaration level. Source: Madagascar customs and UN COMTRADE.|
|Low potential tax yield dummy|Dummy that takes value 1 if the hypothetical tax burden associated with valuing<br>the declaration using external reference prices is equal to or lower than 20,000<br>USD. Defned at the declaration level. Source: Madagascar customs and UN<br>COMTRADE.|
|**G. Inspector characteristics**||
|Male|Dummy variable taking value 1 if the inspector is male and 0 otherwise. Defned<br>at the inspector level. Source: Madagascar customs.|
|Age|Age of the inspector in years. Defned at the inspector level. Source: Madagascar<br>customs.|
|Average tenure 1-2 years|Dummy variable that takes value 1 if the average (within-sample) tenure of the<br>inspector in Toamasina port during the period in which she was active was between<br>1 and 2 years and 0 otherwise. Only the period before delegated randomization is<br>considered when calculating the average tenure. Defned at the inspector level.<br>Source: Madagascar customs.|
|Average tenure 2-3 years|Dummy that takes value 1 if the average (within-sample) tenure of the inspector<br>in Toamasina port during the period in which we was active was between 2 and<br>3 years and 0 otherwise. Only the period before delegated randomization is<br>considered when calculating the average tenure. Defned at the inspector level.<br>Source: Madagascar customs.|
|Economics degree|Dummy variable that takes value 1 if the inspector has a degree in economics and<br>0 otherwise. Defned at the inspector level. Source: Madagascar customs.|
|Management degree|Dummy variable that takes value 1 if the inspector has a degree in management<br>and 0 otherwise. Defned at the inspector level. Source: Madagascar customs.|
|Law degree|Dummy variable that takes value 1 if the inspector has a law degree and 0<br>otherwise. Defned at the inspector level. Source: Madagascar customs.|

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