The study makes a strong case for using excess rainfall shocks as an instrumental variable to assess liquidity constraints. However, the lingering effects of excess rainfall on subsequent seasons, such as altered soil fertility, pest prevalence, or crop health, might challenge the assumption of a clean exclusion restriction. Could the authors provide additional evidence, such as more granular controls for soil nutrient levels or pest infestation data, to reinforce the validity of this Instrumental Variable? Alternatively, are there other potential instruments or methods that might more robustly isolate the causal effects of liquidity constraints?
