In this handbook Victor Ginsburgh and Shlomo Weber bring together methodological, theoretical, and empirical studies in the economics of language in a single framework of linguistic diversity that reflects the history and contemporary study of the topic. The impact of linguistic diversity on economic outcomes and public policies has been studied not only by economists and other social scientists in the contemporary era, but all the way back to the 19th century by geographer and naturalist, Alexander von Humboldt, who emphasized the importance of language in the framework of cultural experience. This interdependence of language and culture is reflected through the chapters in this handbook which have been written by leading economists, linguists and political scientists from universities in the United States, Australia, Russia, Israel, the United Kingdom, France, Spain, Belgium, Germany, Switzerland, Denmark, Finland, Hungary, and the Czech Republic. The contributions are divided into four parts. Part I examines linguistic concepts that forge common ground between economists, political scientists, sociologists and linguists, and introduces the notion of linguistic proximity extensively utilized in various chapters of the volume. Part II assesses the impact of languages on market interactions, including international trade, patent protection, migration, and use of languages in ancient and modern business environments. Part III focuses on the link between linguistic policies and economic development, including the analysis of regional development in Asia, Africa, Europe and Russia. Part IV addresses issues of globalization, minority languages and the protection of linguistic rights in multilingual societies Cover; Half-Title; Title; Copyright; Contents; List of Figures and Tables; Notes on Contributors; Introduction; Part I Linguistic Diversity: Origins and Measurement; 1 Linguistic Theory, Linguistic Diversity and Whorfian Economics; 1.1 Introduction; 1.2 Abstract linguistic form, and the rules and conditions which govern it; 1.3 Linguistic diversity: An illustrative comparison between two languages; 1.4 Theories of linguistic diversity; 1.5 Whorfian psychology and economics: Causal relations between language and thought; 1.6 Non-Whorfian proposals that language influences thought 1.7 Conclusion2 Dynamic Models of Language Evolution: The Linguistic Perspective; 2.1 Introduction; 2.2 Language diversity; 2.3 Language change; 2.4 Dynamic models of language; 2.5 Conclusion; 3 Dynamic Models of Language Evolution: The Economic Perspective; 3.1 Introduction; 3.2 How economic forces can influence language dynamics; 3.3 Feedback mechanisms; 3.4 Economic models of language learning and language use; 3.5 Dynamic economic models of language use; 3.6 Conclusion; 4 What Do We Learn from Neurolinguistics?; 4.1 Introduction; 4.2 Terms, definitions and research areas 4.3 Brain and language4.4 Evolution of brain and language relationships; 4.5 Development of brain and language relationships in childhood; 4.6 The neurolinguistics of bilingualism; 4.7 Conclusion; 5 Linguistic Distances and Ethnolinguistic Fractionalization and Disenfranchisement Indices; 5.1 Introduction; 5.2 Languages, dialects and trade languages; 5.3 Distances between languages; 5.4 The effects of linguistic distances on economic outcomes; 5.5 Linguistic distances between groups; 5.6 Fractionalization and disenfranchisement indices; 6 Ancestry, Language and Culture; 6.1 Introduction 6.2 Ancestry6.3 Culture; 6.4 Ancestry and culture: A simple conceptual framework; 6.5 Ancestry and culture: Empirical evidence; 6.6 Conclusion; 7 Language Learning and Communicative Benefits; 7.1 Introduction; 7.2 Communicative benefits; 7.3 Efficiency; 7.4 Efficient choices of official languages; 7.5 Conclusion; 8 Language and Emotion; 8.1 Introduction; 8.2 Emotions and the polyglot; 8.3 Choosing languages within language communities; 8.4 'Colonized' writers; 8.5 Migrating writers; 8.6 Between languages: Nabokov, Green and Tabucchi 8.7 'Denying' the language in which they wrote: Kafka and Derrida8.8 Conclusion; Part II Languages and Markets; 9 Common Spoken Languages and International Trade; 9.1 Introduction; 9.2 Common native and spoken languages around the globe and their measures; 9.3 A trade economist's stylized view on languages; 9.4 Empirical results; 9.5 Conclusion; 10 Economic Exchange and Business Language in the Ancient World: An Exploratory Review; 10.1 Introduction; 10.2 Language considerations; 10.3 Context of trade and antiquity; 10.4 The written word