A Managerial Economist is one who possesses strong analytical skills and highly developed techniques in solving complex issues regarding decision making. He plays an important role in Industrial Management.
He is also an expert in future advanced planning.
Role of Managerial Economist
The role of Managerial Economist can be briefly classified as:
- Economic Analysis
- Cost-Benefit Analysis
- Assist the Business Planning Process
- Strong Macro-Level Analysis
- Statistical Analysis
- Monitor Economic Environment
- Assistance in Decision Making
- Analyze Macroeconomic Indicators
- Monitor Changes in Monetary and Fiscal Policy
- Detailed Research on Industrial Market
- Coordination with Government authorities
- Prepare Speeches for Top Management
Strong Macro-Level Analysis
He studies all the economic patterns at a macro level and analyzes its impact on the firm he is working in.
Monitor Economic Environment
He always observes the probabilities of transforming the ever-changing Economic Environment into profitable business niches.
Assist the Business Planning Process
He assists the firm in the business planning process.
He carries out the cost-benefit analysis.
Analyze Macroeconomic Indicators
A managerial economist has to analyze the macroeconomic indicators such as population, business cycle, national income, and possible effects on the firm.
Monitor Changes in Monetary and Fiscal Policy
He is also involved in advising the management on the matters of foreign exchange, public relations, and trade. He also makes the firm aware of the impacts on changes in the monetary and fiscal policy of the firm’s functioning.
He also makes an economic analysis of the competitors of the firms.
He collects economic information and collects all crucial information regarding the environmental changes of the firm he is working in.
Detailed Research on Industrial Market
The most significant function of the economist is to do in-depth detailed research on the industrial market.
The role of the managerial economist is to conduct an elaborated statistical analysis.
He has to be extremely vigilant and should be able to handle the pressure.
He provides the information regarding competitor’s price, tax rates, and product etc to the management. They give their valuable advice to government authorities as well.
Prepare Speeches for Top Management
Sometimes situations may arise where he has to prepare speeches for top management.