How effective is (more) money? Randomizing unconditional cash transfer amounts in the US
Ania Jaroszewicz (University of California San Diego), Oliver P. Hauser (University of Exeter), Jon M. Jachimowicz (Harvard Business School) and Julian Jamison (University of Oxford and University of Exeter)
GPI Working Paper No. 28-2024
We randomized 5,243 Americans in poverty to receive a one-time unconditional cash transfer (UCT) of $2,000 (two months’ worth of total household income for the median participant), $500 (half a month’s income), or nothing. We measured the effects of the UCTs on participants’ financial well-being, psychological well-being, cognitive capacity, and physical health through surveys administered one week, six weeks, and 15 weeks later. While bank data show that both UCTs increased expenditures, we find no evidence that (more) cash had positive impacts on our pre-specified survey outcomes, in contrast to experts’ and laypeople’s incentivized predictions. We test several explanations for these unexpected results. The data are most consistent with the notion that receiving some but not enough money made participants’ (unmet) needs more salient, which caused distress. We develop a model to illustrate how receiving cash can sometimes also highlight its absence. (JEL: C93, D91, I30)
Other working papers
The evidentialist’s wager – William MacAskill, Aron Vallinder (Global Priorities Institute, Oxford University) Caspar Österheld (Duke University), Carl Shulman (Future of Humanity Institute, Oxford University), Johannes Treutlein (TU Berlin)
Suppose that an altruistic and morally motivated agent who is uncertain between evidential decision theory (EDT) and causal decision theory (CDT) finds herself in a situation in which the two theories give conflicting verdicts. We argue that even if she has significantly higher credence in CDT, she should nevertheless act …
Do not go gentle: why the Asymmetry does not support anti-natalism – Andreas Mogensen (Global Priorities Institute, Oxford University)
According to the Asymmetry, adding lives that are not worth living to the population makes the outcome pro tanto worse, but adding lives that are well worth living to the population does not make the outcome pro tanto better. It has been argued that the Asymmetry entails the desirability of human extinction. However, this argument rests on a misunderstanding of the kind of neutrality attributed to the addition of lives worth living by the Asymmetry. A similar misunderstanding is shown to underlie Benatar’s case for anti-natalism.
Respect for others’ risk attitudes and the long-run future – Andreas Mogensen (Global Priorities Institute, University of Oxford)
When our choice affects some other person and the outcome is unknown, it has been argued that we should defer to their risk attitude, if known, or else default to use of a risk avoidant risk function. This, in turn, has been claimed to require the use of a risk avoidant risk function when making decisions that primarily affect future people, and to decrease the desirability of efforts to prevent human extinction, owing to the significant risks associated with continued human survival. …