Economic recovery better among optimists

CORAL GABLES, Fla., May 31 (UPI) -- U.S. states with populations that trend more optimistically have weaker economic recessions, stronger expansions and stronger recoveries, researchers say.

Alok Kumar of the University of Miami School of Business says these stronger economic impacts from optimism appear greater in states where people are older, less educated and less socially connected.

"Previous studies have shown that economic conditions affect mood -- people would expect this, it's more obvious," Kumar says in a statement. "Our study is unique in that it shows, for the first time, that mood and optimism can directly affect overall economic activity."

Kumar and colleagues Vidhi Chhaochharia and George Korniotis used several factors to measure mood, optimism and pessimism not influenced by the economic environment including:

-- Weather, sunny weather triggers the release of serotonin in the brain that causes people to be more alert and cheerful, bad weather releases melatonin that makes people feel tired and down.

-- Political affiliation, optimism is greater where the local population favors the political parties in power.

-- Sports, people tend to be more optimistic if their sports teams perform well such as winning the Super Bowl.

Using a novel index based on state housing, state unemployment and income growth, the researchers found peoples' overall good mood and positive outlook can make the impact of a recession weaker, shorter in length and easier to recover.