The Costs of Babylon – Linguistic Distance in Applied Economics

@article{Isphording2012TheCO,
  title={The Costs of Babylon – Linguistic Distance in Applied Economics},
  author={Ingo E. Isphording and S. Otten},
  journal={Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation eJournal},
  year={2012}
}
  • Ingo E. Isphording, S. Otten
  • Published 2012
  • Political Science
  • Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation eJournal
  • Linguistic distance, i.e. the dissimilarity between languages, is an important factor influencing international economic transactions such as migration or international trade flows by imposing hurdles for second language acquisition and increasing transaction costs. To measure these costs, we suggest to use a new measure of linguistic distance. The Levenshtein distance is an easily computed and transparent approach of including linguistic distance into econometric applications. We show its… CONTINUE READING
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