How Do You Write an Economic Analysis?

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The writing process of economic analyses differs depending on the purpose. Economic analyses are most often written in a business setting to analyze costs and profits or in an academic setting when students or faculty members write research papers. The first step to writing an economic analysis is choosing an economic theory to apply to a real world situation.

To write an economic analysis, a writer should first begin with a statement of the problem or explain the data to be analyzed. Next, the writer should explain why solving the problem or interpreting the data through an economic lens is important to another group, such as stakeholders, economists or citizens. The final element of this section is choosing an economic model. Adding an economic model introduces the economic theory the writer has chosen, so readers who are unfamiliar with the subject can interpret the analysis.

After the introductory section is complete, a writer should apply the question or data to the chosen economic theory. For example, to justify a price increase, a writer may use a supply-demand model and then use the theory of price to analyze the data.

Since economics is a qualitative discipline, an economic analysis often involves interpreting data through statistical analysis. At the conclusion of an economic analysis, it is common for a writer to conclude with a regression analysis to prove the point of the analysis. A regression analysis is a statistical process where an independent variable and dependent variables are applied to data.