As a result of Alexander’s feedback, we’ve updated our cost-effectiveness comparison of psychotherapy and cash transfers to include an estimate of the effects on other household members. Our previous analysis only considered the effects on recipients.
For cash transfers, we estimate that each household member experiences 86% of the benefits experienced by the recipient. For psychotherapy, we estimate the spillover ratio to be 53%.
After including the household spillover effects, we estimate that StrongMinds is 9 times more cost-effective than GiveDirectly (a slight reduction from 12 times in our previous analysis).
This new analysis of household effects is based on a small number of studies, eight for cash transfers and three for psychotherapy. The lack of data on household effects is a seriousgap in the literature that should be addressed by further research because it is such a large part—indeed, the majority—of the total effects. The significance of household effects seems plausibly crucial for many interventions, such as poverty alleviation programmes, housing improvement interventions, and air or water quality improvements.
As a result of Alexander’s feedback, we’ve updated our cost-effectiveness comparison of psychotherapy and cash transfers to include an estimate of the effects on other household members. Our previous analysis only considered the effects on recipients.
You can read a summary of our new analysis here.
For cash transfers, we estimate that each household member experiences 86% of the benefits experienced by the recipient. For psychotherapy, we estimate the spillover ratio to be 53%.
After including the household spillover effects, we estimate that StrongMinds is 9 times more cost-effective than GiveDirectly (a slight reduction from 12 times in our previous analysis).
This new analysis of household effects is based on a small number of studies, eight for cash transfers and three for psychotherapy. The lack of data on household effects is a serious gap in the literature that should be addressed by further research because it is such a large part—indeed, the majority—of the total effects. The significance of household effects seems plausibly crucial for many interventions, such as poverty alleviation programmes, housing improvement interventions, and air or water quality improvements.