What Do Economic Consultants Actually Do?
Economic consultants typically work for economic consulting firms which are hired by individual businesses. Sometimes these organizations hire teams with many economic consultants, each of which is tasked with various roles. Economic consulting can describe a wide range of consulting services that are provided by finance and economics experts who may be full-time academics supported by staff from their firm, or they may be partners at the firm themselves.
Those who work in this career are vitally important for high profile legal cases that involve multi-billion-dollar corporations like the 2007 lawsuit involving YouTube and Viacom, which both hired economic consultants to assess all financial aspects of the case, provide analysis, testimony, and expert advice.
These are just a few of the things economic consultants might do while on the job.
Economic consultants often analyze various data involving sophisticated mathematical and statistical models to come up with economic impact predictions, forming the core testimony for a client. They can take all that’s been found in research and transform it into information that will be more usable.
Additionally, they spend quite a bit of time analyzing the work of other consultants to ensure there are no flaws in thinking or mathematical errors. That auditing is key, as the analysis will only be as good as the data and methodology used.
Providing Insight Into Complex Economic and Financial Situations
With so many new businesses failing within the first five years, economic consultants can be critical for beating the odds as they can provide key insight into complex economic and financial situations through critical analysis and research. As mentioned, analysis is a big part of their job.
To come up with the best strategies for success to help organizations weather the difficulties that come during a challenging economic climate, they analyze an extensive amount of data. For a business that’s just starting out, having an expert do the research and planning to put the best strategies in place can be essential for success.
Develop Models for Forecasting
Economic consultants develop econometric and statistical models for economic forecasting. By collecting statistical data and designing methodology they build models to quantify potential detriment and net benefits that may be associated with market, industry, or policy developments. Those changes can have impacts on consumers, tourism, economy, and trade.
They must have an understanding of the drivers of market growth and competition along with technical capabilities to establish the methodology for modeling and apply it to assess the impacts of a variety of scenarios.
For example, they might develop traffic forecasts for regional and metropolitan airports, provide an impact analysis of tourism for government policies, analyze the demand for public service utilities, review transport market structures, and supply chains, along their impacts on service systems.
All of the data that’s compiled and analyzed must be presented in a way that the average person can understand in the form of technical and non-technical reports as well as presentations.
Help a Company’s Leadership Team Create the Best Plan and Set Goals
Economic consultants can help a business realize many benefits by assisting management with strategies that can endure market fluctuations. They are able to assist in the setting of goals, developing an effective marketing plan, and conservative models that provide greater security.