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Table 1: Summary Statistics of Corruption Perceptions

None
Low
Medium
High
Very high
Refused to answer
President
13.9%
12.8%
22.9%
9.2%
3.4%
37.7%
Village Head
47.1%
18.0%
9.5%
1.8%
0.3%
23.3%
Road Project
64.1%
21.1%
5.3%
0.4%
0.2%
8.9%
Notes: Percentage responses to the question In general, what is your opinion of the likelihood of corruption
/ KKN (corruption, collusion, nepotism) involving []? where [] is the President of Indonesia
(Megawati Sukarnoputri), the village head in the respondents village, or the road project, as indicated in the
columns. Possible responses were: none, low, medium, high, and very high. Sample is limited to those
villages where the missing expenditures variable is not missing. Total number of observations: 3,691.
36
Table 2: Relationship Between Perceptions and Missing Expenditures

(1)
Missing expenditures
President corruption low
(2)
(3)
Likelihood of Corruption
in Road Project
(Ordered Probit)
0.186
(0.175)
President corruption medium

President corruption high
President corruption very high
President corruption missing
Village head corruption low
0.280*
(0.167)
0.726***
(0.119)
1.018***
(0.132)
1.180***
(0.163)
1.190***
(0.299)
0.432***
(0.141)
Village head corruption medium

Village head corruption high
Village head corruption very high
Village head corruption missing
Sample Controls
Observations
Mean dep. var
Yes
3314
Yes
3314
0.262*
(0.143)
0.320***
(0.118)
0.515***
(0.127)
0.695***
(0.145)
0.650**
(0.281)
0.006
(0.137)
0.790***
(0.099)
1.054***
(0.120)
1.073***
(0.349)
2.072***
(0.364)
0.735***
(0.103)
Yes
3314
(7)
(8)
(9)
Any Likelihood of Corruption
in Road Project
(Dummy variable 0-1,
Probit Marginal Effects)
0.097
0.119**
0.111**
(0.060)
(0.057)
(0.051)
0.214***
0.059
(0.045)
(0.044)
0.320***
0.142***
(0.043)
(0.041)
0.365***
0.197***
(0.057)
(0.055)
0.282***
0.090
(0.103)
(0.100)
0.155***
0.004
(0.042)
(0.040)
0.307***
(0.041)
0.360***
(0.044)
0.262**
(0.123)
0.615***
(0.049)
0.270***
(0.036)
Yes
Yes
Yes
3639
3639
3639
0.36
0.36
0.36
Notes: Robust standard errors in parentheses, clustered at the subdistrict level. In columns (1) (3), dependent variable is the categorical responses to the
perceptions question, i.e., none, low, medium, high and very high (in that order). In columns (4) (6), dependent variable is a dummy that takes
value 0 if answer was none and 1 if answer was low, medium, high, very high, or if the respondent refused to answer. Village head and President
corruption are dummies for respondents perceived corruption levels of his or her village head and of the President of Indonesia, respectively, where none
is the omitted category. Sample controls are dummies for the three experimental interventions (audit, invitations, and invitations + comment forms),
dummies for the different strata of respondents sampled, and a dummy for which version of the form the respondent received.
* significant at 10%; ** significant at 5%; *** significant at 1%
37
Table 3: Accuracy Prices vs. Quantities

(1)
Missing expenditures prices

Missing expenditures quantities
President corruption low
(2)
(3)
in Road Project
(Ordered Probit)
0.433
(0.277)
0.057
(0.183)
President corruption medium

President corruption high
President corruption very high
President corruption missing
Village head corruption low
0.627**
(0.270)
0.118
(0.177)
0.721***
(0.116)
1.003***
(0.131)
1.185***
(0.161)
1.219***
(0.298)
0.404***
(0.138)
Village head corruption medium

Village head corruption high
Village head corruption very high
Village head corruption missing
Sample Controls
Observations
Mean dep. var
Yes
3314
Yes
3314
Notes: See Notes to Table 2.
38
0.632***
(0.245)
0.077
(0.162)
0.318***
(0.116)
0.495***
(0.127)
0.697***
(0.144)
0.675**
(0.280)
-0.020
(0.135)
0.777***
(0.098)
1.075***
(0.122)
1.095***
(0.331)
2.097***
(0.355)
0.727***
(0.103)
Yes
3314
(4)
(5)
(6)
in Road Project
Probit Marginal Effects)
0.177*
0.205**
0.195**
(0.096)
(0.091)
(0.085)
0.049
0.069
0.057
(0.062)
(0.060)
(0.056)
0.211***
0.057
(0.045)
(0.044)
0.315***
0.137***
(0.043)
(0.041)
0.364***
0.196***
(0.056)
(0.055)
0.289***
0.096
(0.103)
(0.101)
0.148***
-0.001
(0.042)
(0.040)
0.303***
(0.041)
0.364***
(0.044)
0.267**
(0.117)
0.617***
(0.046)
0.268***
(0.035)
Yes
Yes
Yes
3639
3639
3639
0.36
0.36
0.36
Table 4: Optimism and Pessimism

(1)
(2)
(3)
in Road Project
(Conditional Logit)
Education (years)
Age
Female
Predicted per-capita consumption
Participation in social activities
Participation in social activities
where road project likely discussed
Lives in project hamlet
Attended development meeting
Family member of village government
Family member of project leader
Sample controls
President corruption perception
Village head corruption perception
Observations
R-squared
Mean dep. var
Fixed effects
0.065***
(0.018)
-0.003
(0.005)
-0.183*
(0.105)
0.217
(0.193)
0.013**
(0.006)
-0.075***
(0.021)
-0.781***
(0.108)
-0.312***
(0.110)
0.043
(0.112)
-0.399**
(0.203)
Yes
No
No
2675
0.061***
(0.019)
-0.002
(0.005)
-0.226**
(0.108)
0.100
(0.199)
0.014**
(0.006)
-0.074***
(0.022)
-0.804***
(0.111)
-0.296***
(0.114)
0.050
(0.111)
-0.359*
(0.207)
Yes
Yes
No
2675
0.053***
(0.019)
-0.001
(0.005)
-0.213*
(0.109)
0.074
(0.202)
0.013**
(0.006)
-0.072***
(0.022)
-0.786***
(0.112)
-0.305***
(0.116)
0.039
(0.114)
-0.372*
(0.207)
Yes
Yes
Yes
2675
Village
Village
Village
(4)
(5)
(6)
in Road Project
OLS with fixed effects)
0.009***
0.007***
0.006***
(0.003)
(0.002)
(0.002)
-0.000
-0.000
-0.000
(0.001)
(0.001)
(0.001)
-0.026*
-0.022
-0.029*
(0.015)
(0.015)
(0.015)
0.028
0.021
0.015
(0.025)
(0.025)
(0.025)
0.002**
0.002**
0.002**
(0.001)
(0.001)
(0.001)
-0.011***
-0.010***
-0.010***
(0.003)
(0.003)
(0.003)
-0.110***
-0.106***
-0.105***
(0.014)
(0.013)
(0.013)
-0.042***
-0.042***
-0.034**
(0.014)
(0.014)
(0.014)
0.003
0.001
0.005
(0.016)
(0.016)
(0.015)
-0.051**
-0.051**
-0.050**
(0.026)
(0.025)
(0.024)
Yes
Yes
Yes
No
Yes
Yes
No
No
Yes
4084
4084
4084
0.47
0.48
0.49
0.34
0.34
0.34
Village
Village
Village
See Notes to Table 2. Village head corruption perception and president corruption refer to dummies for the respondents response to the corruption question about
village head and President of Indonesia, respectively, as in Table 2. Robust standard errors in parentheses. All specifications include village fixed effects. Note that the
sample size is lower in the conditional logit specification since all villages where there is no variation in the dependent variable are automatically dropped from the
conditional logit model.
39
Table 5: Village Level Differences

(1)
Missing
Expenditures
Log population
Mean village education level (years)
Share of population poor
Meetings with written accountability
report
Number of ordinances from
village parliament
Intensity of social participation
Ethnic fragmentation
Religious fragmentation
Percent of population in hamlet
with project
Mean distance to center of village
Audit treatment
Invitations treatment
Invitations + comment treatment
Sample controls
Household controls
Village head corruption perception
President corruption perception
Observations
R-squared
0.311**
(0.122)
-0.042
(0.048)
-0.372
(0.251)
-0.264*
(0.151)
-0.024
(0.017)
0.022
(0.016)
-1.310**
(0.513)
-1.280
(1.003)
0.297
(0.222)
-0.007*
(0.004)
-0.292**
(0.127)
-0.039
(0.107)
-0.034
(0.092)
N/A
N/A
N/A
N/A
450
0.08
(2)
(3)
in Road Project
(Linear scale, Std Dev 1)
0.143**
0.120*
(0.068)
(0.062)
-0.063*
-0.038
(0.035)
(0.033)
-0.111
-0.089
(0.164)
(0.141)
-0.025
-0.017
(0.095)
(0.075)
0.005
0.012
(0.012)
(0.009)
-0.020**
-0.017**
(0.008)
(0.007)
1.679***
1.260***
(0.316)
(0.294)
0.058
-0.276
(0.723)
(0.701)
-0.013
0.113
(0.161)
(0.132)
-0.001
-0.000
(0.002)
(0.002)
-0.039
-0.099
(0.089)
(0.069)
0.053
0.049
(0.076)
(0.068)
0.161*
0.120*
(0.087)
(0.071)
Yes
Yes
No
Yes
No
Yes
No
Yes
(4)
(5)
in Road Project
(Dummy variable, Std Dev 1)
0.135**
0.092*
(0.065)
(0.054)
-0.058*
-0.020
(0.035)
(0.033)
-0.083
-0.043
(0.157)
(0.141)
-0.076
-0.089
(0.090)
(0.076)
0.012
0.014
(0.011)
(0.010)
-0.025***
-0.022***
(0.007)
(0.007)
1.925***
1.496***
(0.327)
(0.324)
0.082
-0.263
(0.727)
(0.695)
-0.060
0.072
(0.142)
(0.121)
-0.001
-0.001
(0.002)
(0.002)
-0.028
-0.056
(0.087)
(0.070)
0.014
0.040
(0.069)
(0.064)
0.118
0.110
(0.086)
(0.075)
Yes
Yes
No
Yes
No
Yes
No
Yes
Dependent variable in column (1) is missing expenditures; dependent variable in columns (2) and (3) is the linearized variable of corruption perceptions described
in the text, and dependent variables in columns (4) and (5) are dummy variables of corruption preferences. Note that all dependent variables have been rescaled to
have mean 0 and standard deviation 1. Observations in columns (2) (5) are weighted by the inverse of the number of observations in each village, to ensure that
each village receives the same weight as in column (1). Estimation is by OLS, though as discussed in the text, estimation of columns (2) and (3) by ordered probit
and columns (4) and (5) by probit produce qualitatively similar results. Sample controls are as defined in the notes to Table 2; household controls are all of the
individual respondent-level variables considered in Table 4; village head and President Corruption perception refer to dummies for how the respondent answered
the corruption questions about the village head and President of Indonesia, respectively, as included in column (3) of Table 2. Robust standard errors in
parentheses, adjusted for clustering at subdistrict level.
40

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