Add hypotheses summary table (Table 6)
Markdown cell summarizing all 9 hypothesis tests with predictions, key coefficients, and support status including footnotes for H2 diminishing-returns finding, H3 multicollinearity caveat, and H4 level-vs-slope distinction. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
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"levels but not budget sensitivity, and spatial autocorrelation diagnostics provide no\n",
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"evidence of unmodeled geographic spillover processes.\n"
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"source": [
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"## Hypotheses Summary\n",
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"\n",
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"**Table 6. Summary of Hypotheses, Predictions, Findings, and Empirical Support**\n",
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"\n",
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"| # | Hypothesis | Prediction | Key Result | Support |\n",
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"|:---:|---|---|---|:---:|\n",
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"| **H1a** | Capacity → Inspection volume | Higher OGI budget predicts more inspections per district | β = 666.3 inspections per $1M (z = 3.13, p < .01); R² = .769 | ✓ |\n",
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"| **H1b** | Capacity → Compliance | Higher OGI budget predicts higher district compliance rate | β = 0.26 pp per $1M (z = 2.31, p = .02); R² = .538 | ✓ |\n",
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"| **H1c** | Capacity → Resolution | Higher OGI budget predicts higher violation resolution rate | β = 1.05 pp per $1M (z = 3.28, p < .01); R² = .624 | ✓ |\n",
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"| **H2a** | Goal ambiguity moderates capacity → compliance | Clearer inspection focus amplifies budget effect | Interaction significant but **negative** (β = −6.53, z = −3.55, p < .01): higher inspection share produces diminishing, not amplified, returns | Partial† |\n",
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"| **H2b** | Goal ambiguity moderates capacity → resolution | Clearer inspection focus amplifies budget effect | Interaction not significant (p = .24) | ✗ |\n",
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"| **H3** | District heterogeneity in budget slopes | Budget → compliance slope varies across districts | Point estimates range from −0.34 pp/$1M (D03) to +1.36 pp/$1M (D6E); inference unreliable due to multicollinearity | Descriptive only‡ |\n",
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"| **H4a** | Offshore jurisdiction moderates budget effect | Offshore districts show different budget → compliance slope | Level effect significant (+7.6 pp, p = .02); slope interaction not significant (β = −0.03, p = .87) | Partial§ |\n",
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"| **H4b** | Border proximity moderates budget effect | Border districts show different budget → compliance slope | Level effect significant (+6.0 pp, p = .03); slope interaction marginal (β = −0.25, p = .08) | Partial§ |\n",
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"| **H4c** | Spatial autocorrelation in residuals | Geographic spillovers produce clustered residuals | Moran's I = −0.051; no significant spatial autocorrelation | ✗ |\n",
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"\n",
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"*Notes:*\n",
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"*† H2 moderation operates through a diminishing-returns mechanism rather than amplification. At mean inspection budget share (≈ 0.62), the implied marginal budget effect on compliance is approximately 0.15 pp per $1M.*\n",
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"*‡ H3 interaction standard errors are unreliable (near-perfect multicollinearity in the saturated model); budget slopes are reported as descriptive point estimates only.*\n",
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"*§ Geographic classification predicts compliance **levels** but not budget sensitivity. Offshore and border districts exhibit systematically higher compliance regardless of annual budget variation.*\n",
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"\n",
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"**Regression sample:** N = 104 (13 districts × 8 years, 2016–2023). All models include district fixed effects; standard errors clustered at the district level.\n"
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