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Inspections 1-2 years ago

0.185

0.174*

0.176*

on this plant

(1.07)

(1.74)

(1.75)

Year Indicator Variables State Indicator Variables Facility-Specific Fixed Effects

Yes No

Yes Yes

Yes Yes

Yes

No

No

Table 1A. Benchmarking Simplified Methods for Measuring Specific Deterrence: A Quantitative Analysis of Air Pollution Compliance in the Steel Industry

Logit with Fixed

Logit with Random

Logit with Conditional

Effects

Effects

Random Effects

Variable Description

NOTES: Observations are by plant and year. The dependent variable is the 0/1 compliance status with air pollution regulations. Non-compliance (“0”) occurs if the facility for one or more quarters during the year. The key explanatory variable is a 0/1 inspection indicator variable. This variable equals 1 if this facility received an inspection 1-2 years ago. For comparability with the existing literature, reported coefficients on the key explanatory variables are marginal effects (not coefficients). A superscript * indicates statistical significance at the 10% significance level. ** indicates statistical significance at the 5% significance level. *** indicates statistical significance at the 1% significance level.

Year Indicator Variables State Indicator Variables Facility-Specific Fixed Effects

Yes No

Yes Yes

Yes Yes

Yes

No

No

NOTES: Observations are by plant and year. The dependent variable is the 0/1 compliance status with air pollution regulations. Non-compliance (“0”) occurs if the facility for one or more quarters during the year. The key explanatory variable is a 0/1 inspection indicator variable. This variable equals 1 if this facility received an inspection 1-2 years ago and/or 2-3 years ago. For comparability with the existing literature, reported coefficients on the key explanatory variables are marginal effects (not coefficients). A superscript

  • *

    indicates statistical significance at the 10% significance level. ** indicates statistical significance at the

5% significance level. *** indicates statistical significance at the 1% significance level.

Table 1B. Benchmarking Simplified Methods for Measuring Specific Deterrence: A Quantitative Analysis of Air Pollution Compliance in the Steel Industry

Inspections 1-3 years ago

0.487**

0.272***

0.274***

on this plant

(2.02)

(2.56)

(2.58)

Logit with Fixed

Logit with Random

Logit with Conditional

Effects

Effects

Random Effects

Variable Description

22

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