Design of a Basic Analytical Framework for Human Capital, Public Goods and Institutions Based on Linguistic Economics

Abstract

In the paper, we analyze and demonstrate the economic nature of language from the aspects of human capital, public goods and institutions, and put forward three topics in the field of Language Economics: language human capital; Language is a kind of public goods; Language is a system. As human capital, it is one of the important factors that determine people's employment and income in the labor market. It is closely related to people's social and economic activities and economic conditions; As a public product, language can directly affect the choice and formulation of language policy; As a system, language not only affects the transaction cost, but also affects the effectiveness of other institutional arrangements. As far as the existing research is concerned, the research on proposition 1 has become a very mature field of language economics. The research on propositions 2 and 3 has just started, but the prospect is very broad. This is worth studying. It is reasonable to believe that the follow-up research of language economics is usually based on or supported by these three arguments. In this sense, they can be used as the basis of linguistic economic analysis.