Pranav Krishna
Consultant at Universal Consulting
Economic consulting is a specialized field of consulting that focuses on applying economic methodologies to help businesses, governments, and legal teams solve complex problems, such as market analysis, regulatory compliance, and policy analysis.
If you’re transitioning from a finance background or curious about how economic analysis can inform important business decisions, a career in economic consulting could be a good fit.
In this article, we’ll discuss:
- An overview of economic consulting
- Top economic consulting firms to have on your radar
- 5 tips on how to land economic consulting jobs
- Possible exit opportunities for economic consultants
Let’s get started!
What is Economic Consulting?
Economic consulting is a specialized field at the intersection of economics, law, and business. It involves applying economic theory, econometrics, and data analysis to provide quantitative insights to answer business and economic regulation questions. The goal is to deliver data-driven strategies that inform business decisions, shape public policies, or give input to legal cases.
Clients in economic consulting come from various sectors, but most often are law firms, government agencies, corporations, and regulatory bodies. As an economic consultant, you will conduct market research, assess regulatory effects, analyze policy, provide expert testimony, or evaluate the economic implications of a problem. Some questions that economic consultants address include:
- How will a potential merger impact consumers and the competitive environment?
- What is the economic impact of a new labor policy introduced in a region?
- What are the economic damages caused by a firm due to a breach of contract?
Different Economic Consulting Practice Areas You Can Specialize In
Here are some key practice areas that economic consulting firms specialize in. While not exhaustive, this will give you a better understanding of the type of work you might do.
- Antitrust and Competition: This focuses on cases where companies are involved in practices that restrict competition, violate antitrust laws, and negatively affects consumers. Economic consulting firms may assist their clients (typically law firms) to argue the case for the consumers or the accused company.
- Policy and Regulation: In this field, you’ll work with government, regulatory agencies, or businesses to evaluate the economic impact of proposed policies and guide the client on how to ensure policy changes have the intended effects or adapt to the policy changes.
- Litigation Support: Economic consultants act as expert witnesses and advisors, especially in financial and securities fraud cases. They assist with fair valuation, provide expert testimony, and calculate damages for the affected parties.
- Valuation: As the name suggests, valuation projects deal with determining the fair value of assets (e.g. financial, business enterprise, intellectual property). This is critical when organizations are involved in disputes and economic consultants are asked to assess value and estimate damages.
- International Arbitration: When cases involve entities in different countries or disputes with foreign government regulations, economic consultants are called upon for expert testimony, analysis of damages, etc.
Let’s look at some real-life project examples:
- Evaluating competition within the health insurance sector to determine whether a dominant player’s practices violate antitrust laws
- Providing expert testimony and calculating damages resulting from a breach of contract and patent infringement by an agricultural chemicals firm
- Leading a research study of the economic effects of raising the minimum wage and making recommendations on how to implement the policy while minimizing adverse effects; consultants would analyze labor market data, model potential impacts on employment, business costs, and consumer prices
Similarities & Differences Between Economic Consulting vs. Generalist Consulting
While economic consulting and management consulting involve advising clients, there are significant differences too.
Let’s look at the key similarities and differences:
Similarities:
- Client-Centric Problem-Solving: Both economic and management consultants focus on providing tailored solutions to clients. Whether improving operational efficiency in management consulting or analyzing the economic impact of regulatory changes in economic consulting, both fields require consultants to deeply understand client needs.
- Data-Driven Analysis: Consultants in both fields use data to inform their recommendations. Management consultants may analyze business performance metrics or market data, while economic consultants dive deeper into econometrics, statistics, and economic modeling to guide decisions.
- Diverse Industries: Both types of consulting offer exposure to a wide range of industries. In both fields, you could work on projects ranging from healthcare to retail to technology, and many more fields.
- Working Hours and Compensation: It is not uncommon for consultants in both fields to clock in 50 to 60 hours per week. Compensation is broadly comparable, as consultants work a lot and are compensated for their efforts. For more information, see our article on Consulting Salaries.
Differences:
- The Focus of the Work: Management consulting typically involves advising on business strategy, operations, and growth, with a focus on improving performance. On the other hand, economic consulting is more specialized, with a focus on applying economic theory and data analysis to solve legal, regulatory, or market-specific problems.
- Type of Clients: Management consultants generally work with corporations. Economic consultants on the other hand work with law firms, government agencies, and regulatory bodies, particularly in litigation and policy analysis.
- Skillset and Industry Knowledge: Management consultants typically possess broader business acumen, with a strong focus on problem-solving and strategic thinking. Economic consultants require a deep understanding of economics and quantitative analysis, often holding advanced degrees in economics or related fields.
- Team Composition: Management consulting traditionally involves a team of generalists led by a partner/senior manager, who is specialized in a particular industry (though some management consulting firms have built specialized knowledge by growing practice areas). Economic consulting engagements are typically led by “experts,” such as an economist or a senior member of the consulting firm with a team of economic consultants.
Get access to Exclusive Free Training on passing consulting case interview.
Get access to
Exclusive Free Training on passing consulting case interview.
Exclusive Free Training on passing consulting case interview.
Top Economic Consulting Firms
There are 2 types of economic consulting firms:
- Specialist economic consulting firms focused exclusively on economic consulting
- Generalist consulting firms with economic consulting projects or a specialized practice
Below, we will explore some of the top firms in each category. To learn more about current top economic consulting firms, check out Vault’s “Best Consulting Firms for Economic Consulting” list.
Specialist Economic Consulting Firms
NERA
National Economic Research Associates (NERA), founded in 1961, is a well-regarded name in economic consulting, with over 500 professionals in 23 offices worldwide. The firm works with governments, law firms, and corporations and is known for its expertise in antitrust and competition, financial and securities litigation, and mergers and acquisitions.
Charles River Associates
Charles River Associates (CRA) is a global consulting firm with nearly 800 consultants across 22 locations. CRA specializes in economic litigation, antitrust and competition, valuation, and arbitration. It also has a strong presence in healthcare consulting, ranking #16 in Vault’s “Best Consulting Firms for Health Sciences Consulting 2024.”
Cornerstone Research
Founded in 1989, Cornerstone Research specializes in economic and financial analysis and expert testimony for litigation and regulatory cases and works extensively with law firms. With 9 global offices and 700 employees, Cornerstone is known for its work in antitrust and competition, valuations, merger investigations, and international arbitration.
Analysis Group
Since 1981, Analysis Group has provided economic and financial expertise to law firms, corporations, and government agencies. Key areas include antitrust and competition, intellectual property, and securities litigation. The firm, recognized for its collaborative environment, has 1200 employees across 14 offices and is known for its commitment to professional development (#7 in Vault’s “Best Consulting Firms for Relationships with Supervisors 2024”) and a thriving healthcare practice in analytics and strategy.
Compass Lexecon
Established in 1977, Compass Lexecon employs around 850 professionals across 23 offices globally. The firm specializes in economic analysis for law firms, government agencies, and corporations. Its key practice areas include antitrust and competition, securities and financial litigation, intellectual property, and mergers and acquisitions.
Generalist Consulting Firms with Economic Consulting Projects or Practice Area
MBB firms (McKinsey, BCG, Bain), along with the Big 4 (KPMG, EY, PwC, Deloitte), maintain strong economic consulting practices. In Vault’s 2024 rankings for “Best Consulting Firms for Economic Consulting,” McKinsey claimed the top spot, with Bain and BCG following at #3 and #4, respectively. KPMG, EY, and Deloitte also secured places in the top 10, while PwC ranked within the top 15.
The economic consulting work at these generalist firms differs from that of specialist economic consulting firms. Their focus often includes economic development consulting, and advising governments, international organizations, and corporations on strategies for fostering sustainable economic growth. Projects in this space may involve enhancing job creation, advancing infrastructure, alleviating poverty, and driving social impact.
One of the advantages of working at these generalist firms is the opportunity for consultants with a passion for economics to apply their skills across a diverse range of projects. This allows them to address broad business challenges while gaining exposure to multiple sectors and industries. You could also start in the generalist practice and move to the economic practice internally once you gain more firm experience and build relationships.
Top 5 Tips On Landing Economic Consulting Jobs
1. Master Economics and Technical Skills
A degree in economics or a related field is highly regarded by economic consulting firms. Make sure to showcase any relevant coursework or experience in your application.
Economic consulting heavily relies on data analysis using tools like Python, SAS, Stata, or R. Building your proficiency with these tools and strengthening your data interpretation skills will greatly enhance your chances of landing a role at top economic consulting firms.
2. Stay Informed on Economic and Policy News
Economic consulting often involves analyzing the effects of policy changes, regulatory developments, and market shifts. Staying current with economic events and understanding their implications will help you stand out. Subscribe to newsletters or read the news daily to understand what’s going on in the macro environment.
3. Highlight Relevant Experience
Whether through internships or research projects, emphasize any experience involving data analysis, economic research, finance, or business. These experiences demonstrate the practical skills that economic consulting firms are looking for.
4. Develop Strong Communication Skills
In economic consulting, you’ll often need to explain complex economic concepts and data findings to non-experts like lawyers or executives. Communicating your insights clearly and effectively is crucial in this field.
5. Prepare for Case Interviews
Economic consulting interviews often involve case studies that test your ability to apply economic principles to real-world issues. Be sure to practice case interviews that focus on market analysis, regulatory impacts, and competition economics to hone your problem-solving skills. If you want to know what to expect from case interviews, check out our article on Consulting Case Interview Prep: The Ultimate Guide.
Career Opportunities After Economic Consulting
After a few years at one of the top economic consulting firms, you will have a lot of great experience. There are many potential exit opportunities for economic consultants, including:
- Data Analyst: Leverage extensive experience in data analysis to land roles at leading tech firms and any allied industry in which data analysis is an indispensable tool.
- Government: Work with government agencies and think tanks to shape public policy and regulations.
- Private Equity or Venture Capital: With strong skills in market analysis and valuation, economic consultants are well-suited for roles in private equity or venture capital firms.
- Corporate: Transition to in-house strategy teams or financial advisory roles across sectors such as finance, healthcare, or tech, using your economic expertise to guide business decisions.
- Academia: Pursue academia or research to transition into teaching roles, eventually leading to you becoming a highly sought-after “expert!”
– – – – – – –
In this article, we’ve covered:
- An overview of economic consulting: what it is and how it differs from traditional strategy consulting
- Examples of top economic consulting firms, both specialist and generalist
- 5 tips on how to land an economic consulting job
- Potential exit opportunities after working as an economic consultant
Still have questions?
If you have more questions about economic consulting, leave them in the comments below. One of My Consulting Offer’s recruiters will answer them.
Other people prepping for economic consulting found the following pages helpful:
Help with Your Consulting Application
Thanks for turning to My Consulting Offer for information about economic consulting. My Consulting Offer has helped 89.6% of the people we’ve worked with to get a job in management consulting. We want you to be successful in your consulting interviews too. For example, here is how Eve was able to get her offer from McKinsey.
Get access to Exclusive Free Training on passing consulting case interview.
Get access to
Exclusive Free Training on passing consulting case interview.
Exclusive Free Training on passing consulting case interview.