**Table 4: Alternative Explanations for Differential Treatment**

|Before delegated rando|mization of ins|pector assignme|nt||
|---|---|---|---|---|
|Dependent variable<br>**Time**|**Fraud**|∆**log value**|∆**log tax**|**Hyp. tax**|
|||||**revenue**<br>|
|||||**losses**|
|**A. Control**<br>|**ling for fami**<br>|**liarity**<br>|||
|(1)|(2)|(3)|(4)|(5)|
|Excess interaction share<br>-1.797***|-0.278***|-0.081***|-0.082***|0.323*|
|(0.429)<br><br>|(0.096)<br>|(0.023)<br>|(0.028)<br>|(0.176)<br>|
|Familiarity<br>-0.042|-0.000|0.000|-0.001|0.012*|
|(0.027)|(0.005)|(0.002)|(0.001)|(0.006)|
|Observations<br>40,990|44,359|44,273|40,324|44,335|
|R-squared<br>0.321|0.214|0.153|0.133|0.211|
|**B. Control**|**ling for cong**|**estion**|||
|(6)|(7)|(8)|(9)|(10)|
|Excess interaction share<br>-2.002***|-0.275**|-0.079***|-0.085***|0.389**|
|(0.362)|(0.100)|(0.022)|(0.031)|(0.175)|
|Congestion<br>0.098**|-0.004|0.001|0.000|-0.001|
|(0.038)|(0.004)|(0.001)|(0.001)|(0.005)|
|Observations<br>41,121|44,522|44,434|40,471|44,497|
|R-squared<br>0.318|0.214|0.152|0.132|0.211|
|**C. Excluding declarations reg**|**istered outsi**|**de regular bus**|**iness hours**||
|(11)|(12)|(13)|(14)|(15)|
|Excess interaction share<br>-2.033***|-0.270***|-0.079***|-0.088***|0.385**|
|(0.358)|(0.093)|(0.021)|(0.028)|(0.177)|
|Observations<br>40,285|43,497|43,409|39,534|43,473|
|R-squared<br>0.316|0.220|0.156|0.136|0.210|
|**D. Adding i**|**mporter fxe**|**d efects**|||
|(16)|(17)|(18)|(19)|(20)|
|Excess interaction share<br>-2.051***|-0.170**|-0.069***|-0.081***|0.242***|
|(0.287)|(0.071)|(0.021)|(0.024)|(0.087)|
|Observations<br>40,311|43,691|43,601|39,678|43,669|
|R-squared<br>0.393|0.327|0.292|0.297|0.429|
|**E. Adding importer fxed efects a**<br>|**nd excess int**<br>|**eraction share**<br>|**with import**<br>|**ers**<br>|
|(21)|(22)|(23)|(24)|(25)|
|Excess interaction share<br>-2.056**|-0.221*|-0.047|-0.075*|0.092|
|(0.837)|(0.122)|(0.035)|(0.040)|(0.166)|
|Excess interaction share with importer<br>-0.172|0.016|-0.003|0.006|0.099|
|(0.474)|(0.104)|(0.018)|(0.027)|(0.105)|
|Observations<br>9,537|10,281|10,263|9,184|10,278|
|R-suared<br>0371|0308|0238|0226|0240|
|q<br>.<br>**F. Dropping top 3 inspectors with the largest sh**|.<br>**are of declar**|.<br>**ations with ex**|.<br>**cess interacti**|.<br>**on each semester**|
|(26)|(27)|(28)|(29)|(30)|
|Excess interaction share<br>-2.207***|-0.258***|-0.085***|-0.087***|0.367*|
|(0.432)|(0.082)|(0.022)|(0.029)|(0.180)|
|Observations<br>32,542|35,222|35,152|31,935|35,203|
|R-squared<br>0.322|0.222|0.161|0.141|0.201|

_Notes:_ Standard errors clustered two-way by inspector and by broker presented in parentheses. ***, **, and * indicate significance at 1%, 5%, and 10% levels, respectively. _Excess interaction share_ is the difference between the share of given broker’s declarations handled by an inspector in a given semester and the hypothetical share she would be expected to handle if the allocation of declarations to inspectors were random conditional on their productivity, as prescribed by official rules, calculated using calibration methods (as explained in Section 4). All specifications control for the tax rate, the risk score, a dummy for the red channel, the share of value accounted for by differentiated products, a dummy indicating whether the declaration was mixed, a dummy indicating the declaration was subject to valuation advice, inspector fixed effects, broker fixed effects, source country fixed effects, and month-year fixed effects. "Observations" refers to the number of non-singleton observations. OLS estimation is used. The sample covers the period January 1, 2015 to November 17, 2017 (i.e., before the delegated randomization intervention).

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