**Table A1: Variable Definitions, 2/5**

|**Variable name**|**Variable defnition and data source(s)**|
|---|---|
|**D. Corruption proxies, continu**|**ed**|
|Excess interaction share - inspector<br>logits|Diference between the share of given broker’s declarations handled by an inspector<br>in a given semester predicted by a binomial logit model that includes risk controls,<br>day of week and broker fxed efects, and the share predicted by a binomial<br>logit model that includes only day of week fxed efects (that capture conditional<br>random assignment accommodating variation in inspectors’ schedules).Defned at<br>the inspector-broker-semester level. Source: Madagascar customs.|
|Signifcantexcessinteractionindi-|Dummyvariablethattakesvalue1iftheexcessinteractionshareispositiveand|
|<br>cator|<br>statistically signifcant, i.e., if an inspector handles a much higher share of a given<br>broker’s declarations in a given semester than would be expected if ofcial rules<br>were adhered to, where statistical signifcance is based on simulation methods<br>(discussed in Section 4), and 0 otherwise. Defned at the inspector-broker-semester<br>level. Source: Madagascar customs.|
|Signifcant excess interaction indi-<br>cator - inspector logits|Dummy variable that takes value 1 if the relevant broker fxed efect in the<br>binomial logit model of the assignment of declarations that controls for day of<br>week dummies, risk controls, and broker fxed efects is signifcant at the 1%<br>signifcance level, and 0 otherwise. Defned at the inspector-broker-semester level.<br>Source: Madagascar customs.|
|Withheld from randomization|Dummy variable that takes value 1 if the random assignment of the declaration<br>was not performed by third-party GasyNet even though it was supposed to, and<br>0 if it was. Defned at the declaration level. Source: GasyNet.|
|Inspection share|Inspector’s share of all import declarations cleared in Toamasina in a given<br>semester. Source: Madagascar customs.|
|**E. Customs outcomes**||
|Time|Log of the diference in time (measured in hours) between the date of assessment<br>of the declaration by the inspector and the date of assignment of the declaration<br>to the inspector that cleared the declaration. Defned at the declaration level.<br>Source: Madagascar customs.|
|Fraud|Dummy variable that takes value 1 if the customs inspector identifes fraud in<br>the import declaration and 0 otherwise. Defned at the declaration level. Source:<br>Madagascar customs.|
|∆log value|Diference between the log of the declaration value retained by customs and the<br>log of the initially submitted value by the importer or his representative. Defned<br>at the declaration level. Source: Madagascar customs.|
|∆log tax|Diference between the log of the taxes paid (including tarifs, VAT) on the<br>declaration and the log of taxes that should have been paid in the absence of<br>customs controls (which equal taxes paid minus tax adjustment by the customs<br>inspector). Defned at the declaration level. Source: Madagascar customs.|
|Tax yield|Sum of total taxes assessed (in USD). Defned at the declaration level. Source:<br>Madagascar customs.|
|Hypothetical tax revenue losses (in-<br>ternal prices)|Computed as log (1+ (tax rate _×_ fnal average internal reference price _×_ fnal<br>weight retained by customs)) - log (1 + (tax rate _×_ fnal value retained by<br>customs)). Defned at the declaration level. Source: Madagascar customs.|
|∆log weight|Diference between the log of the fnal weight retained by customs and the log of<br>the initially submitted weight by the importer or his representative. Defned at<br>the declaration level. Source: Madagascar customs.|
|Weight gap (relative to port author-<br>ity weight)|Diference between the log of the port authority weight and the log of the initially<br>submitted weight by the importer or his representative. Defned at the declaration<br>level. Source: Madagascar customs and Madagascar International Container<br>Terminal Services Limited (MICTSL).|
|Hypothetical tax revenue losses<br>(internal prices & port authority<br>weight)|Computed as log (1+ (tax rate _×_ fnal average internal reference price _×_ port<br>authority weight)) - log (1 + (tax rate_×_fnal value retained by customs)). Defned<br>at the declaration level. Source: Madagascar customs and MICTSL.|

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