Working Paper

Welfare-optimal Status Planning of Minority Languages: An Economic Approach

Bengt-Arne Wickström
CESifo, Munich, 2011

CESifo Working Paper No. 3427

We analyze normatively determined distributions of language rights in multilingual settings. It is shown in a welfare-maximizing model where rights today influence the status of a language in the future, that the “naïve” ex ante cost-benefit analysis has to be augmented in various directions. This has its roots in the dynamic aspect of the rights and the resulting endogeneity of preferences as well as in the discrete character of rights. It is shown how efficiency and distribution considerations are affected by these considerations.

CESifo Category
Public Finance
Behavioural Economics
Keywords: minority rights, changeable preferences, dynamic preferences, welfare function, second-best analysis, overlapping generations
JEL Classification: D630