Discussion with Joel McGuire and Michael Plant

Abstract

The article considers the cost-effectiveness analysis (CEA) of cash transfers (CTs) and cognitive therapy (CT) in reducing global poverty and mental health issues, respectively. The authors criticize a CEA conducted by the Happier Lives Institute for not including household spillovers for CTs in their calculations, yet seemingly accepting a smaller study with fewer participants. The authors argue that including household spillovers would improve the CEA of CTs. They conclude that making predictions about the real world should take account of all relevant empirical evidence available. – AI-generated abstract.