Abstract:
We examine patterns of acquiring non-native languages in a model with two languages and heterogenous populations in two countries or regions. We show that both interior and corner linguistic equilibria can emerge, and that the fraction of learners of the foreign language is higher in the country with a larger cost adjusted communicative benefit. We also point out that linguistic equilibria can exhibit insufficient learning which opens the door for welfare-improving policies, which seem to need joint effort by both countries or regions.