Hansen, Stephen; Ash, Elliott; Muvdi, Yabra; Marangon, Claudia; (2025) Large Language Models in Economics. In: Weber, Shlomo and Ginsburgh, Victor, (eds.) Handbook of Economics and Language. Palgrave (In press).

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Abstract

This revised and updated handbook brings together methodological, theoretical, and empirical studies in the economics of language. With contributions from leading researchers, it examines the impact of linguistic diversity on economic outcomes and public policies. The interdependence of language and culture is highlighted through an analysis of the evolution of different languages and the economic consequences of linguistic diversity, as well as the impact of language on consumer behavior and the creation of gendered economic structures. Particularly attention is given to the impact of languages on macroeconomics, including the relationship between language and trade, and language and migrations. The challenge of globalization to minority languages and the growth of multilingual societies is also discussed, alongside the specific dynamics between economics and language at a regional level. It also addresses new developments in LLM (large language models).

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