Economics for lawyers?

[habeas_dorkus]

I'll be starting as a new associate at a mid-sized law firm next fall after my last semester of school, the bar exam and a couple months of travel/relaxation/sleep. Before I start, I'd like to learn a little about some basic concepts of economics, especially as they pertain to the day-to-day business of a law firm.

Having never studied economics or business, I know nothing of these subjects, and would like to have a little knowledge before starting, so I'll know more about what's going on and will have a better idea of what I can do to make myself more valuable to the firm in the long run.

If anyone has any suggestions on books I could read, or specific ideas I should concentrate on, I'd appreciate it.

 

[uffe]

Economics in One Lesson by Henry Hazlitt

 

[DNW]

Sounds like you're looking for a book on the business side, not an econ book. I'm not sure how a pure econ book will help you out with your career. Unless you're going into antitrust, I don't see how econ is going to help you with your law work. Personally, I've just read Letters to a Young Lawyer by Dershowitz and found it to contain some practical advice.

 

[JBZ]

Do you know at this point in what area of law you'll be practicing, or is your firm's first year program structured so that you'll be practicing in many different areas, at least for awhile?

 

[habeas_dorkus]

I'll be working in the litigation group. Don't know specific areas or to which partner I'll be assigned.

DarknWorn is right: I think I am interested in a book on the business side of things. I've seen "MBA for Dummies" type books; not sure if that's the kind of thing I should read or if that will contain more information than will really be helpful to me.

 

[Aaron]

Hey HD,

The following are my rec's for good primers on economics and business:

What the CEO Wants You to Know by Ram Charan

Probably the best book I've ever read on the basics of business. Charan is now an internationally known consultant but started out running a family shoe store in India. The big idea of this book is that no matter what the size or complexity of a business the fundamentals of running it and making money are the same. Very straightforward and clear explanations of basic business terms.

The World is Flat by Thomas Friedmen

Friedmen examines the huge innovations and changes in technology, politics, and the way companies run globally in the past five years. He talks a lot about outsourcing and the growth of India and China. However, I found the discussions on what kinds of economic and political challenges and opportunities will be hitting the Western World in the next few years to be the most interesting.

Good to Great by Jim Collins

Probably the single best book on organizational change I've ever encountered. Examines why some companies, no matter the industry or time, have consistently been successful over the long-term. Very easy to understand and well written.

Dr. Strangelove's Game by Paul Strathern

The most entertaining book on economic history I've ever read. Covers every historic event, idea and character fairly well. What it lacks in detail it makes up for in not putting you to sleep.

My friend and I have started a blog a few weeks ago to review books on business. You can find it at http://businessbookblog.blogspot.com/ Our focus is primarily on leadership, entrepreneurship, and sustainability. We're just getting it off the ground so there aren't too many reviews, but more will follow. PM if you would like more recommendations.

A

 

[rdawson808]

Originally Posted by habeas_dorkus

I'll be starting as a new associate at a mid-sized law firm next fall after my last semester of school, the bar exam and a couple months of travel/relaxation/sleep. Before I start, I'd like to learn a little about some basic concepts of economics, especially as they pertain to the day-to-day business of a law firm.


My first comment is that, no, econ and business are not the same thing. As others have pointed out, it seems you want to know more about the business of a law firm rather than economic theory.

If, however, you are interested in the intersection of law and economics (it's an entire field unto itself in economics) there are plenty of things you can read. Much is focused on regulation and antitrutst. There is stuff written by lawyers such as Breyer's Regulation and Its Reform (a bit dated at this point) and Posner's Economic Analysis of Antitrust (or maybe it is Antitrust Law: An Economic Perspective). On the other hand you could go for the theory of Viscusi, Vernon, and Harrington's The Economics of Regulation and Antitrust or Kwoka and White's The Antitrust Revolution: Economics, Competition, and Policy.

There is also plenty written about efficient breach of contract, intellectual property, valuation of human life, and other topics that may be of interest to you.

Law and Econ isn't my field and I have only taught the class once about 7 years ago but I may be able to point you in the right direction if you are interested. I'm amazed that more lawyers don't seem to know more about econ. Economics, it seems to me, infused virtually every aspect of the law.


bob

 

[montecristo#4]

Good lord.

If you are looking to enhance your value t your clients, then what you want is Brealey and Myers Priciples of Corporate Finance.

If you are looking to try to gain an understanding of how the legal practice works from a business perspective, then just pay attention as you go. Ask good questions instead of just putting your head down and billing 2000 hours a year.

 

[DNW]

habeas, I don't think the precise book you're looking for exist. To my knowledge, there's no equivalent book to the likes written for consultants (The McKinsey Way) or investment bankers (Goldman Sachs: The Culture of Success). Perhaps these books can shine a general light on how to succeed at the cut throat culture of a law firm. I also find Jack Welch's books to be good reads. BTW, I've considered careers in consulting and banking before settling on law school (2L now).

 

[Hanseat]

Stupid question from someone who attends law school in germany?

You don't have to take any classes in economics or business in Law school in the US? Here in Freiburg they even used to be one Faculty until about 30 yrs. ago...

That's what is so interesting about law school in the US being a graduate program as opposed to Europe- if you want to know about the business side of law, you could pursue a BA in business before your study of law... but if you don't care, you don't have to.

Is that about accurate?

 

[DNW]

Originally Posted by Hanseat

That's what is so interesting about law school in the US being a graduate program as opposed to Europe- if you want to know about the business side of law, you could pursue a BA in business before your study of law... but if you don't care, you don't have to. Is that about accurate?
Yup! Because the law is so dense here, it's a discipline that requires some sort of basic education. It superimposes itself on top of everything else. It is helpful, though, that you studied in undergrad what you are going to practice as a lawyer.

 

[milosh]

I'd suggest getting Principles of Economics by Mankiw. Very well written and covers the basics of economics.

Someone suggested Principles of Corporate Finance by Brealey and Myers, that's also a very good book, but it would probably be usefull only if your practice is tied to finance.

 

[javyn]

I have a BS in Econ, and work on the litigation team for an IP firm. I don't use anything I learned in college at work. The discipline that will probably help you the most I'd say is Accounting.

 

[Tibo]

You could have a look to the "Ten day MBA" by Silbiger. It's far from perfect or exhaustive, but it does a decent job explaining the basics of marketing, strategy, organizational behaviour. Rather weak in finance.

 

[lawyerdad]

Originally Posted by javyn

I have a BS in Econ, and work on the litigation team for an IP firm. I don't use anything I learned in college at work. The discipline that will probably help you the most I'd say is Accounting.
+1
Ask questions of the partners you work with about how the firm works - and be prepared to agree graciously when you are told that the answers to some of your questions are not an associate's business. Volunteer to serve on firm administrative committees that will give you an opportunity to work with partners, other associates, and staff on matters that will give you some insight into the firm's workings. (And become friendly with the administrative staff, who often know far more than some of the partners about the firm's nuts-and-bolts financial procedures and issues.) I suspect there are some publications by the Hildebrandt group or similar others that serve as business/marketing consultants to law firm management. A lot of this stuff range from cookie-cutter fluff to crap, but it nevertheless may give you a helpful overview of how law firm finances tend to work and some of the big-picture structural issues that are involved.