Pacey Economics, Inc. has over 30 years of experience in litigation support involving personal injury, wrongful death, and employment termination matters as well as commercial and real-estate matters. The firm has also been awarded numerous contracts from State agencies and public organizations to study and report on public policy decisions.  In addition, Dr. Pacey serves on a number of public committees including the Colorado Commission for Higher Education and Rocky Mountain Public Broadcast Services. Dr. McNulty has been the lead researcher on several energy research projects and has managed complex statistical analyses for the EEOC. The cases and projects described below are a representative sample of the many projects Pacey Economics, Inc. has completed over the years. In addition to being key researchers on litigation and public policy projects, Jeffrey E. Nehls provides expert witness testimony.









Recent Publications:











Pacey Economics, Inc. assesses damages in many lawsuits with case-specific circumstances. Some examples include:


  • Calculate the likely lost earnings (wages and benefits) and future medical/life care expenses of children severely injured at birth using family socioeconomic data and Bureau of Labor Statistics data in addition to a wealth of government and academic labor economic sources

  • Evaluate the economic losses of individuals exposed to toxic chemicals through the course of their employment who are unable to return to their industry due to health concerns

  • Estimate the economic losses to a surviving husbands and children following the death of their wife/mother; economic losses include the legally required offset for the woman's own expenditures (e.g. food, clothing); incorporate the cost of nanny services for the surviving children as well as the lost earnings and home services to the family

  • Retained to evaluate the economic losses of an individual who had run his own physical therapy practice before he was severely injured in an automotive accident; computed the loss stream of earnings from the practice as a result of his inability to perform his usual labor activities

  • Calculated economic losses to multiple individuals that were exposed to and contracted Hepatitis C during their stay at a hospital

  • Retained to compute economic damages to multiple victims of the September 2001 terrorist attacks as well as the 2008 Mumbai terrorist attacks




  • Performed regression analysis comparing the compensation of female and African American workers compared to white male workers in a matter involving more than twenty (20) current and former employees of a financial services company; also provided individual damage analysis for each plaintiff.

  • Performed regression analysis comparing the change in hours worked by African American workers compared to all other workers in a matter involving more than ten (10) current and former employees of a transportation contractor of the United States Postal Service; also provided individual damage analysis for each plaintiff.  

  • Analyzed the lost earnings of over twenty Plaintiffs who were terminated and claimed their employer (a public services company) committed misconduct in its employee elimination program; included a complex assessment of the loss of pension benefits, as the Plaintiffs had all been vested in the public service company’s defined benefit plan.

  • Retained by an international computer company that was defending a discrimination claim brought by a number of its minority employees (the Plaintiffs claimed lack of or delayed advancement within the company); obtained eight years of salary, performance, and socioeconomic data to perform a multivariate regression analysis where monthly salary was used as a proxy for advancement; revealed the Plaintiffs in the case had advanced at a rate greater than the vast majority of their similarly situated co-workers.

  • Evaluated the damages of the average claimant associated with excess layoffs and age discrimination claims against a large national defense company; incorporated data on all employees over the relevant timeframe and a questionnaire was designed to obtain information regarding the new wage and benefit opportunities from subsequent employment of each Plaintiff

  • Provided preliminary economic loss computations for negotiation purposes for gender discrimination claims against a postal service company; included measures of lost wages, medical coverage, pension and other benefits for over 30 individual Plaintiffs

  • Retained to evaluate damages following a company-wide reduction in force (RIF) of over 400 Plaintiffs; developed an employee questionnaire to systematically obtain individual data on age, gender, education, training, breaks in service, position, pay, overtime opportunities, years of service, stock purchase and stock option plans, accrued vacation, sick leave, etc. plus the post-termination compensation, etc.; used the questionnaires from over 100 Plaintiffs to develop a damage model that was then applied to more than 400 plaintiffs to identify the aggregate damages




       Corporation for Public Broadcasting

  • The focus of this project has been to evaluate current and future issues regarding the effectiveness of long-standing radio and television grant programs. This undertaking has required us to not only develop a thorough understanding of a unique economic sector, but also to create an entirely new database integrating radio and television station financial data with a multitude of socioeconomic, demographic, and market data sets for each station’s listening or viewing audience. The result is a data-rich platform containing a history of financial, operational, socioeconomic and market data for eligible public radio and television stations; where much of this data was not previously integrated by station. Pacey Economics, with the help of kspatial, a data focused technology company, developed the data platform in a Amazon Web Services (AWS) cloud database. The depth and expansiveness of our data platform allowed us to not only address the particular issues initially defined by the client, but also to identify and analyze other related issues arising from avenues of analysis not previously possible without an integrated data resource. By implementing sophisticated coding and data management techniques, we were able to evaluate performance and compliance issues with the current system, identify how changes (socioeconomic, demographic, market, and other) have impacted the performance and outcomes of the current system, and also demonstrate likely effects of proposed changes on future grant allocations. This project is ongoing.


       Economic Analysis for PERA


  • PERA is the Colorado retirement plan for nearly 500 government agencies and public entities with over a half-million members, and provides billions of dollars of benefit payments annually to Colorado residents 

  • Measured the economic and fiscal impacts of the Colorado Public Employees' Retirement Association (PERA) benefit payments to Colorado recipients

  • Analyzed at the state, regional, and county levels including the use of an input-output model to estimate the economic and fiscal impacts. 

  • Ongoing completion of economic impact studies, updated approximately every two years (see "Recent Publications" above for a link to the most recent study)

  • Compared the economic benefits of PERA retirement plans versus Social Security and private retirement plans to the State of Colorado

  • Studied and reported on the economic differences between defined contribution (DC) plans and defined benefit (DB) plans


       Colorado Department of Education Declining Enrollment Study


  • Conducted a comprehensive review of Colorado public school funding and explored the impact of declining enrollments on school districts' funding and expenditures as well as the consequential impact on student performance as measured by CSAP scores

  • Prepared an econometric model to identify the pertinent factors that impact student performance

  • Analyzed the public school funding formula, necessary education costs, education choice, and the characteristics of students and districts

  • Addressed school district consolidation and the cost of providing an education meeting state and federal requirements


       Amendment 23


  • Modeled the requirements identified in Amendment 23 to the Colorado Constitution, which created an education fund from a portion of tax revenues and mandated minimum spending levels the state legislature must provide for public education in Colorado

  • Developed a comprehensive model, which allows legislators to evaluate the impact of future funding and spending scenarios on the longevity of the fund

  • Worked closely with members of various government departments including Legislative Council Staff, Office of the State Planning and Budgeting, Colorado Department of Education, Department of Treasury, etc. and to present their findings to the Legislative Audit Committee and the Joint Budget Committee.


       Colorado Lottery Forecast


  • Analyzed the revenue forecasting methods employed by the Colorado Lottery

  • Utilized econometric techniques to determine the relationship between different variables in the lottery process and provided recommendations for improvements

  • Reviewed the budgeting and grant process of Great Outdoors Colorado (GOCO)


      RTD Performance Audits


  • Evaluated the fare-setting practices of the Regional Transportation District (RTD) for compliance with federal and state law, equity/diversity of ridership, etc.

  • Analyzed the economic efficient of routes and compared RTD services to cities with similar demographics

  • Orally presented before the Legislative Audit Committee, a committee comprised of four state senators and four state representatives




  • Awarded contracts by the State auditor's office that have focused on programs funded by tobacco settlement monies received by the State of Colorado including three health care programs operated by the Colorado Department of Public Health and Environment and the Colorado Department of Health Care Policy and Financing as well as the Read to Achieve Grant Program operated by the Colorado Department of Education


       BMEA - City of Boulder Negotiations


  • Retained on multiple occasions over the past two decades to assist the Boulder Municipal Employee Association (BMEA) with their compensation negotiations with the City of Boulder

  • Provided comparisons of BMEA salary increases to City of Boulder management salary increases, in addition to comparisons to inflation and City of Boulder general fund increases

  • Examined Bureau of Labor Statistics data and Bureau of Census data among other salary survey sources to assess the level of Boulder salaries to Denver area and national salaries.  Other components of our analyses included examining the real life implications of inflation out-pacing wage increases, years of service by employee type, and Boulder area housing costs  


       NREL Cost Analysis


  • Developed econometric models for the National Renewable Energy Laboratory (NREL), a facility of the U.S. Department of Energy

  • Prepared quantitative models to identify the factors that impact the consumption and prices of fuels (i.e., gasoline, diesel, and the newer ethanol and biomass-based diesel fuels)

  • Models were developed to quantify the coupling of energy and transportation prices with the total cost of crop production, and to capture similar energy price-production cost couplings in the downstream steps of the bio-fuels supply chain


      Cost of Living Studies


  • Provided Cost of Living Studies to the Colorado Legislative Council 

  • Determined appropriate products and sampling techniques, collected price data for every school district (178 districts) in Colorado, organized the results of the survey incorporating shopping pattern habits, and estimated the annual cost of living for each district as well as computing various statistical measures to confirm the validity of the study

  • Completed this project in the fall of 2001 and was awarded the project again in 2003 and 2005.


      September 11, 2001 Victim Analyses


  • Prepared economic loss analyses that were utilized during hearings for the Special Victims' Fund for the victims of the September 11, 2001 terrorist attacks

  • Loss analyses were tailored for the specific circumstances of each individual 

  • Provided loss analyses for victims with circumstances (e.g., income) outside the matrix developed by the Special Master 


      Sports Economics


  • Long-standing involvement on sports economic issues

  • Empirical analyses of sports participation, the economic impact on a university and community as a result of college football games, the financial analysis of Division I athletic programs, the quantification of television ratings and the relation of such ratings to game characteristics among others

  • Investigated the issues surrounding the federal legislation commonly known as Title IX

  • Compared participation rates in various activities including varsity and intramural athletics as well as scholarship awards to determine, not only if comparable opportunities are being provided to both male and female college students, but also if the opportunities that are provided are meeting the demand for those activities by the respective gender

  • Economic impact studies for Division 1-A athletic programs




  • In the early 1980s the firm was highly involved in and produced numerous analyses in the rapidly evolving telecommunications industry

  • Retained to evaluate the competitive effects of rate-making decision or other proposed regulatory matters in the telecommunication industry





  • Performed a comprehensive damage analysis outlining losses to the distributor after an employee terminated a lucrative distribution and service contract; considered the individual firm revenue and cost situation, evaluated the fixed and marginal cost and profit opportunities, recognized the industry and market parameters, and developed a detailed understanding of the industry for the identification of appropriate capitalization and discount rates

  • Evaluated damages to the aggrieved party following  a disputed sale of common stock; calculated damages related to the value and profit from the disputed transaction, as well as a claim of “excess salary” paid to the defendants 

  • Estimated economic damages in a case involving a large media company filing for bankruptcy, it was revealed that its former accountant (and later CEO) had embezzled tens of thousands of dollars; assessed the lost profits to the company over the embezzlement period, as well as the lost business value that was not received in the liquidation of assets through bankruptcy  

  • Evaluated the economic loss incurred by a developer due to construction defects; quantified the costs to repair the defects, lost rents due to an approximate 2 year delay in completing the project, and statutory interest

  • Identified what, if any, damages were due to either party in a complex contract dispute between a cell phone media company and cell phone billing company after the two companies could not agree as to whether to follow the “Original Agreement” or a “Modified Agreement” 

  • Retained to estimate the additional adjusted gross proceeds to a City following a construction project as the attorneys who negotiated the terms entered into an agreement with the City for a contingency fee if the City benefited from the project; employed econometric modeling to demonstrate the City did benefit economically from the project and estimated the additional adjusted gross proceeds to the City 

  • Analyzed a 100 year old livestock feed business’ pre-fire operations, and forecasted the business’ trajectory with a timely indemnification, as opposed to the operation under the claimed delay of the insurance payment 

  • Assessed the damages related to the sale of a company that understated its liabilities (and correspondingly overstated its revenues and incomes) by “writing-off” gift certificates or advanced payments; measured the difference between the fair market value of the Company without the Defendants’ misrepresentation less the fair market value of the Company with the misrepresentation

  • Reviewed and critiqued the economic analysis preferred by the Plaintiff in a matter involving claimed business losses due to a business inadvertently not being shown in the Yellow Pages; by analyzing the case specifics as well as industry data, Pacey Economics contested the lost revenues, customer life assumptions, additional costs, etc. claimed by the Plaintiffs.

  • Valued the minority shareholder's interest in a business when a majority of stockholders expelled the minority shareholder; took into account relevant market data and adjusted for the lack of marketability of a closely held business, which is not as liquid as a large, publicly held corporation.      





  • Assessed the effect of alleged noxious and persistent odors impact on property values; created a detailed econometric model, and calculated the discount in price for each house affected by the gases, with estimated damages totaling more than $15 million 

  • Retained to respond to a study purporting no diminution of property values from nearby mining; developed an alternative economic model employing econometric and psychometric techniques, and (utilizing the same database as the prior study), found identifiable and statistically significant diminution of value in the properties located near the mine

  • Evaluated base property values for the properties surrounding a manufacturing plant that emitted toxic chemicals; created an econometric model to estimate the unimpaired values by incorporating specific housing characteristics

  • Responded to an economic analysis that reported no detrimental impacts to property values from electrical transmission wires; conducted a preliminary analysis and reviewed the initial survey; opined that the initial survey had irreconcilably flawed assumptions and a more detailed analysis would be required to definitively determine the property values.

  • Retained in a class-action suit to determine unimpaired property values (i.e., property values absent from chemical contamination) in an area with contaminated groundwater; the analysis included over 800 properties and over 600 control area sales to determine the loss associated with the diminution of property values.