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Fun facts aside, i think there is a deeper and more
consequential purpose to the study of love.

Think about what love means to you.

To me, it means caring
about others and being cared for.

Love is valuable,
even if it is absent from both our national accounts
and our political discourse.

In the language of economics, love is a form of
insurance.

It involves bonds of reciprocity that
provide support when we’re feeling down, when we’re
sick and when times are tough.

More broadly, love has the power to mitigate the free-
rider and moral hazard problems associated with
social (and private) insurance.

Bailing out a bank
might encourage executives to take bigger risks in
the future, but helping loved ones down on their luck
has fewer incentive problems because our loved ones
typically care for us in return.

Such mutually
beneficial relationships make us all more resilient in
times of crisis.

This is why the household remains one
of the most powerful institutions for organising not
just families but also our economic lives.

If we can find more love for our fellow citizens, our
society will function better.

Hard as this may be to
achieve in an era when trust in government, business
and one another is low, it’s worth the effort.

Love helps us expand our boundaries of trust beyond our own selfish ends.

It is a currency that helps us trade in trust as far as the matters of the heart are concerned.

When you expand the boundaries of trust and reciprocity,
you expand the boundaries of what is possible.

Happy Valentine,whatever that means to you!

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