Table 8.

Heterogeneous effects and intermediate inputs dependency (declarative and execution stage).

	(1)	(2)
Panel A
Congestion declarative	−0.0104∗∗∗ (0.0026)	−0.0077∗∗ (0.0029)
Congestion declarative x Dependency p[0–25]	0.0017 (0.0047)
Congestion declarative x Dependency p[0–50]		−0.0043 (0.0032)
Panel B
Congestion execution	−0.0021∗∗∗ (0.0005)	−0.0018∗∗∗ (0.0006)
Congestion execution x Dependency p[0,25]	0.0026∗∗∗ (0.0006)
Congestion execution x Dependency p[0,50]		0.0007 (0.0004)
Year and firm FE	YES	YES
Observations	3,305,041	3,305,041
R-squared	0.3143	0.3145

Robust standard error sin parentheses.

∗∗∗p ​< ​0.01, ∗∗p ​< ​0.05, ∗p ​< ​0.1.

Note: Table 8 reports the estimated effect of the congestion rate in the civil jurisdiction on the investment rate of firms, considering potential heterogenous effects depending on intermediate input use by firms (see the equation presented in section 5). The dependent variable is the investment rate. We account for firm fixed effects by means of the within transformation. We also account for year fixed effects. Standard errors are two-way clustered at both the firm and year level. In all regressions the firm-level controls are cash flows, EBIT/assets, debt burden, Debt/assets, and sales growth. We also control for province level determinants of investment. Panel A refers to the effect of congestion at the civil jurisdiction in the declarative stage. Panel B replicates the analysis for the case of congestion at the civil jurisdiction in the execution stage. In Column 1 we interact the measure of congestion with a dummy variable taking a value equal to 1 if the intermediate input dependency of a firm is below the percentile 25 of the distribution. In Column 2 we interact the measure of congestion with a dummy variable taking a value equal to 1 if the intermediate input dependency of a firm is below the median of the distribution. All variables are lagged by one year. The considered sample covers the period 2002–2016.