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The Power of Hope

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Hope is an underexplored yet fundamental concept in economics, significantly influencing how individuals navigate life's challenges, especially the disadvantaged. Unlike aspirations, which focus on specific goals, hope is a deeper sentiment that drives behavior. Key questions arise: Is hope a genetically determined trait resilient to negative shocks, or is it more malleable? Can hope be restored in populations where it has diminished? Can the experiences of optimistic and resilient groups be applied to others? Economist Carol Graham aims to expand the study of hope through econometric analysis and field surveys in Latin America and the United States. By integrating insights from biology and psychology, the work highlights the potential benefits of including hope in economic analysis, particularly concerning human well-being. While this area is relatively uncharted, the book presents empirical evidence showing that hope can enhance life outcomes, while despair can be detrimental. The urgency of understanding hope is underscored by the ongoing crisis of deaths of despair in the US and the pandemic's impact. A deeper social-scientific understanding of hope could be vital for improving public health outcomes.