My post earlier this week on dissipating effects of cash transfers on adults in beneficiary households has caused not only a fair amount of disturbance in the development community, but also a decent amount of confusion about the three-year impacts of GiveDirectly’s cash transfers, from a working paper by Haushofer and Shapiro (2018) – HS (18) from hereon. At least some, including GiveDirectly itself and some academics, seem to think that one can reasonably interpret the findings in HS (18) to imply that the short-term effects of GD, also by Haushofer and Shapiro (2016) – HS (16) from hereon – were sustained three years post treatment. Below, I try to clear up the confusion regarding the evidence and explain why I vigorously disagree with that interpretation.
One of the things I get asked when people are designing experiments – when they are either interested in or worried about spillover effects – is how to divvy up the clusters into treatment and control and what share of individuals within treatment clusters to assign within-cluster controls. The answer seems straightforward – it may look intuitive to assign a third to each group and I have seen a few designs that have done this, but it turns out that it’s a bit more complicated than that. There was no software that I am aware of that helped you with such power calculations, until now...
On May 25, I attended a workshop organized by the Harvard School of Public Health, titled “Causal Inference with Highly Dependent Data in Communicable Diseases Research.” I got to meet many of the “who’s who” of this literature from the fields of biostatistics, public health, and political science, among whom was Elizabeth Halloran, who co-authored this paper with Michael Hudgens – one of the more influential papers in the field.
Pardon the pun. But, psychological wellbeing has been in the news recently: do cash transfer programs have negative spillover effects on those who live near beneficiaries but do not receive transfers themselves?