In this handbook, Victor Ginsburgh and ShlomoWeber bring together methodological, theoretical, and empirical studies in theeconomics of language in a single framework of linguistic diversity thatreflects the history and contemporary study of the topic. The impact of linguisticdiversity on economic outcomes and public policies has been studied not only byeconomists and other social scientists in the contemporary era, but all the wayback to the 19th century by geographer and naturalist, Alexander von Humboldt,who emphasized the importance of language in the framework of culturalexperience. This interdependence of language and culture isreflected in the chapters in this handbook, which have been written by leadingeconomists, linguists, and political scientists from universities in the UnitedStates, Australia, Russia, Israel, the United Kingdom, France, Spain, Belgium,Germany, Switzerland, Denmark, Finland, Hungary, and the Czech Republic. The contributionsare divided into four parts. Part I examines linguistic concepts that forge commonground between economists, political scientists, sociologists, and linguists,and introduces the notion of linguistic proximity extensively utilized invarious chapters of the volume. Part II assesses the impact of languages onmarket 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 economicdevelopment, including the analysis of regional development in Asia, Africa, Europeand Russia. Part IV addresses issues of globalization, minority languages, and theprotection of linguistic rights in multilingual societies.