[Dhruv Gupta]

Sir, I beg to know, in the context of Instrumental Variables, when the exclusion restriction is satisfied i.e. in the above-mentioned setting, if Rainfall affects Onset only through Military Personnel, could the three-way interaction effect of the variables still be significant?

[Dhruv Gupta]

Sir, I received the following comment from a blind reviewer to the model mentioned above:

"In fact, if the exclusion restriction is satisfied and the instrumental variable Rainfall affects Onset of Civil Wars only through GDP, the interaction effect of the variables can be significant."

I beg to know how could that be possible.