THE MASTER IN APPLIED ECONOMICS PROGRAM
Gain hands-on experience and learn from leading industry experts and academics, boosting your career prospects in just ten months. The program is divided into three terms, offering students a mixture of core courses, elective specialist tracks, and a Final Project. Classes will take place in our vibrant and diverse Madrid campus.
POWERED BY RESEARCH, METHODS AND DATA
The Master in Applied Economics gives you all the industry know-how, with a practical twist. The far-reaching study plan is designed to future-proof your skill set. You’ll combine theory, research and data analysis to respond to real-world economic issues, giving you the hands-on experience that recruiters are looking for.
From learning about the fundamentals of economics to analyzing case studies and forecasting from models, you’ll be well-equipped to launch a successful career in finance, consulting or public policy. Choose from one of three tracks in your third term to specialize and further your skills.
EXPLORE THE MASTER IN APPLIED ECONOMICS
- Pre-Program
- TERMS10 Months
- Final Project
- ADD-ONS
- 1st termSEPTEMBER – DECEMBER
- 2ND TERMJANUARY - APRIL
- 3RD TERMAPRIL - JULY
The pre-program is an introductory period held before the program begins and completed by the end of the introduction week. During this module, you’ll explore the basic tools that allow professionals to develop meaningful insights from quantitative information and delve into basic programming in R and Python. During the pre-program period, you’ll study several courses including:
DATA ANALYTICS
This pre-course is designed to provide a set of basic tools that allow you to develop meaningful insights from quantitative information. You will also acquire the fundamental numerical skills required for performing well during the core phase of your master’s degree.
PROGRAMMING FOR ECONOMICS
This pre-course introduces you to basic programming in both R and Python. Through hands-on exercises, you’ll learn the theory behind—and application of—some basic Python and R scripts. By the end of the course, you’ll know how to use different libraries, operators and data structures. You will also acquire the necessary knowledge for the core course, Data Science for Economics.
MICROECONOMICS
This course aims to provide the essential foundations of Microeconomics. Review the fundamental concepts as you prepare for the main Microeconomics course in the Master in Applied Economics. Through this course, you will acquire the essential tools for analyzing consumer and firm behavior and enhance your understanding of the main concepts with practical applications.
Your Final Project marks the culmination of your learning journey, centering on a meticulously researched thesis or a collaborative Capstone Project conducted at a distinguished institution. Both avenues allow you to apply your expertise in economic and human development to a project aligned with your chosen specialization. The Capstone Project, performed in groups, offers various prestigious opportunities with globally renowned partners.
You can further enrich your studies through a wealth of add-on experiences such as training, workshops and certificates. These complementary experiences add invaluable practical know-how in areas that interest you specifically.
CERTIFICATE ON FOUNDATIONS OF SUSTAINABILITY
IE University’s Certificate on Foundations of Sustainability is an optional program that complements your master’s degree and showcases your commitment to incorporating sustainability into your professional work. The Certificate takes a dynamic, holistic approach that will shape your thinking and give you the highly in-demand skills to address today’s most pressing challenges. The program will provide you with a highly sought-after set of skills and the knowledge required to tackle the challenges our institutions, corporations and societies face today.
ONE-WEEK INTERNATIONAL FIELD TRIP
During the final term of the Master in Applied Economics, you will have the opportunity to take part in a one-week international field trip and visit different international corporations. This unique experience will allow you to absorb insights and gain new perspectives from leading industry experts.
EXCHANGES
Customize your program by spending an extra semester at one of our eight partner universities worldwide after your third term in Madrid. Please note that spots are limited in all exchange programs.
Some of our global partner universities are:
SCIENCES PO
ASHOKA UNIVERSITY
UNIVERSITÄT ST. GALLEN
MACROECONOMICS
In this course, you’ll study the collective economic behavior of governments, businesses and households through topics such as gross domestic product, national income, economic growth, unemployment and inflation, the business economic cycle, and fiscal and monetary policy.
Blend basic macroeconomic theory with time- and country-specific studies to understand specific market dynamics, such as how interest rates affect real estate prices, or how regulation impacts energy prices.
MICROECONOMICS
Dive into microeconomic theory and its real-world applications with an introduction to decision-making from the lens of the uncertainty principle and the expected utility theory.
You’ll then study the law of supply and demand and understand the basic forces behind competitive equilibrium. Throughout the course, you’ll analyze the behavior of consumers and companies, learning to solve optimization and surplus problems along the way.
INTERNATIONAL ECONOMICS (TRADE AND FINANCE)
Understand the traditional and contemporary theories of international trade, tariff and non-tariff trade barriers and efficient trade policy. In this course, you’ll also examine international finance theories and their influence on interest rates between interconnected economies. By the end, you’ll understand the factors behind global financial crises and appreciate the complex interplay between sovereign debt, monetary policy, international trade and economic growth.
PUBLIC ECONOMICS AND TAXATION (MARKET FAILURES, TAXATION, AND INCENTIVES ANALYSIS)
Learn how to leverage microeconomic analysis tools to analyze government spending, taxation and regulation. Through this course, you’ll explore welfare economics, the role of government in resource allocation and public intervention policies within different historical, political and economic contexts. Additionally, you’ll analyze the key challenges facing market economies, such as the inadequate supply of public goods, information asymmetries and the presence of negative externalities.
This course takes a microeconomics approach to identify optimal government behavior, but its content will also help you understand why decision-makers choose particular macroeconomic policies.
INTRODUCTION TO FINANCIAL MARKETS
This course explores fundamental principles of financial economics and their role in effective decision-making. Learn to evaluate risks, time, uncertainty and opportunity cost, and analyze the assumptions of rationality behind economic decision-making models. Furthermore, you’ll develop the skills required to evaluate investments, oversee financial and management accounting, and gain actionable insights from financial data and reports to make better business decisions.
STATISTICS AND ECONOMETRICS
Harness the power of quantitative methods for economic analysis using software programs such as R, Stata and Python. You’ll start with an in-depth introduction to probability theory and its relevance to statistical analysis and development economics. Afterward, shift your focus to econometric applications such as maximum likelihood as well as linear and nonlinear models. Through our hands-on approach, you’ll apply relevant techniques to real-world datasets and learn to communicate the results through visualization and simplification.
FINANCIAL MARKETS AND INSTITUTIONS (CORPORATE FINANCE)
Explore the primary and secondary capital markets and become an expert on debt issuance and purchase. With this course, you’ll understand the economic function of various financial instruments. Differentiate between stock markets and bond markets, and examine the distinctions between capital markets, money markets and bank loans. What’s more, you will learn to navigate monetary and fiscal policy challenges stemming from micro-financial linkages, and how to assess financial vulnerabilities using various analytical tools.
INDUSTRIAL ECONOMICS AND GAME THEORY
Leverage microeconomic and game theory to understand how strategic competitors behave in different market conditions. To help you accomplish this, the course delves into topics such as product differentiation, strategic investment and new markets, among others.
Investigate how companies make advertising or R&D decisions and explore advanced concepts like the Nash equilibrium, dominance, backward induction, credibility and asymmetric information. Further, you’ll study the practical applications of game theory, including oligopoly models, bargaining, labor market signaling and more.
MACROECONOMETRICS
Understand the practical applications of time series econometrics from a macroeconomic context. In this course, you’ll study autoregressive moving average processes, nonstationary time series models, unit root tests, vector autoregression models and cointegration analysis.
Learn how to forecast macroeconomic activity using various econometric approaches—ranging from simple time series analyses to complex simultaneous equations—and gain the know-how to leverage your results for effective decision-making.
MICROECONOMETRICS
This course provides the advanced econometric tools you will generally need for the empirical analysis of microdata. You will acquire a thorough grasp of estimation techniques for both panel data and non-linear models.
You’ll model microeconometric data, applying different linear models as alternatives to the multiple linear regression model. By the end of this course, you’ll gain a range of advanced techniques through topics like the generalized method of moments, systems of regression equations, likelihood ratio tests, and analysis of limited dependent variables, among others.
PROGRAMMING FOR ECONOMICS
In this course, you will study the different programming languages used in economic analytics, including Python and R. Through hands-on approaches, you’ll learn essential techniques required for the management, manipulation, analysis and visualization of different types of data.
Study a wide range of topics, including variables, databases, basic mathematical and statistical modeling, iterations, DataFrames, arrays and more. During this course, you’ll pay special attention to advanced concepts related to different data structures and their sources, gaining practical skills for real-world economics.
PROJECT ANALYSIS AND IMPLEMENTATION
Develop advanced project management skills in this highly practical course. You will study the operational and design needs of corporate projects, as well as the soft and managerial skills to lead effective teams. Learn how to work with stakeholders, manage risks and anticipate critical variables, and refine your expertise with common project management tools and resources.
STRATEGIC MANAGEMENT AND LEADERSHIP
Uncertain times call for strategic responses. In this course, you’ll acquire the knowledge and strategic leadership and management skills economists need to address social, political and economic challenges. Learn how to align mission with objectives, track growth, motivate teams and spearhead change initiatives.
LABOR ECONOMICS (AND THE NEW SOCIAL CONTRACT)
Labor Economics explores the forces and processes that determine labor demand, labor supply, labor mobility and wages.
You will assess the role of government policy and regulation in determining labor force dynamics and gain an understanding of the factors that affect both individual decisions to enter the labor market and those taken within it.
You will explore the role of employment and unemployment in the economy, examining the factors that influence firms in making decisions about hiring or firing workers, selecting certain profiles, or determining career paths.
You will also study the role of institutions and government policies on job creation and quality.
Based on your Final Project, you can choose a career specialization from these three* tracks: Economics for Public Policy; Economic Analysis for Corporations; or Economic Consultancy and Market Regulation.
Each track offers unique elective courses aimed toward your unique academic and professional aspirations.
*Providing an enriching learning environment is one of our priorities. With this in mind, if only a small number of students enroll in a specific track, that track will not run that academic year.
ECONOMICS FOR PUBLIC POLICY
This is the track for socially conscious professionals looking for a career where they’ll make an impact on large organizations such as the International Monetary Fund (IMF), the World Bank or national governments. In this track, you’ll study subjects such as health, education, labor economics, poverty and urban economics, giving you a comprehensive insight into the art of economic policy-making.
POVERTY AND INEQUALITY
This subject addresses the complex relationship between economic development and human rights, political freedoms and social equality. Examine how social exclusion can harm economic development, and how subtleties of certain economic policies or projects can reinforce social exclusion.
HEALTH AND EDUCATION ECONOMICS
In this subject, you will study different healthcare systems, markets and economic models. You will discuss possible economic solutions to the problems presented by various economic systems and market failures.
In the Education classes, you’ll leverage skills learned in microeconomic data analysis to examine supply, demand and financing in education, including a study of public policy in the sector and the importance of education in economic development and growth.
REGIONAL AND URBAN ECONOMICS AND DEVELOPMENT
This subject addresses the importance of space within the context of economic analysis, examining localization within a changing, globalized world. You will understand various spatial development models and dive into local development policies, using regional and international case studies to enhance your learning.
ECONOMIC ANALYSIS FOR CORPORATIONS
This track is for ambitious corporate leaders who want to master the more technical dimensions of economics. If you’re drawn to economic modeling, rigorous quantitative methods or the application of machine learning and data analytics to business, this is the track for you. Learn to wield the tools behind complex operations, asset management, investment modeling and the modern financial services industry, gaining in-demand skills that few people possess and placing you front and center for positions at the most prestigious companies worldwide.
MACHINE LEARNING AND DATA MANAGEMENT
This course covers the fundamentals of machine learning, both supervised and unsupervised. You’ll examine algorithms and models for factor reduction and PCA techniques, as well as the main regression and classification models, such as LASSO, Ridge and decision trees.
You will also explore data visualization and analyze the different applications and characteristics under which a machine learning technique is applied to economic analytics.
ADVANCED QUANTITATIVE METHODS
This course introduces students to the most advanced methods in econometrics, including: ARCH models, GMM, Regime-Switching models, CAPM (Capital Asset Pricing Model) tests, term structure models and volatility models—both implied and stochastic. You will also learn aspects of time series econometrics for stationary and non-stationary variables at different time frequencies.
EXPERIMENTAL ECONOMY: EXPERIMENTS AND SURVEYS
This course covers the theory and practice of conducting surveys and experiments. Both social science (economics, sociology and psychology) and quantitative methods (mathematics, statistics and computer science) are leveraged to develop a theory of how surveys can best be used to measure important aspects of the human condition.
Key topics include sample design, weighting, data collection models, questionnaire design, non-response analysis and estimation models in surveys. The course also covers randomization, instrumental variables and statistical inference.
ECONOMIC CONSULTANCY AND MARKET REGULATION
If you’re looking to work for some of the most competitive consulting companies in the world, you’ll need the strategic vision provided by this track. Combine your knowledge of M&A, pricing analysis, project evaluation and market dynamics to become a successful strategic consultant. Completing this track will place you firmly in the path of the world’s largest consulting firms.
ECONOMICS FOR CONSULTANCY
This course examines the economic analysis techniques that help companies, regulators and policymakers evaluate and implement strategic decisions. It covers the microeconomic theories, econometrics, quantitative techniques and financial modeling used, alongside corporate experience, to formulate advice for organizations.
Merger and acquisition (M&A) opportunities are studied, along with new tax regulations and the demand for public and private services. The course includes sectoral analysis such as financial services, telecommunications or public services, as well as analysis of competition policy and regulations.
PROJECT VALUATION
This course provides students with the tools to evaluate projects for businesses, nonprofit organizations and governments. Concepts covered include project evaluation criteria such as NPV or IRR, discount rates, risk assessment, project timing and project irreversibility.
REGULATION OF MARKETS
This course uses the techniques of microeconomic and game theory to analyze the effects of various laws on individual decisions and resource allocation. It covers public choice theory, the economics of property rights, contract law, and tort law.
You will study efficient breach of contract, the determination of damages, the economics of patents and copyrights, optimal liability rules for environmental and other damages, the economics of family law, bankruptcy law, zoning law, antitrust law, and due process.
*Please note that our program content is continually updated to remain in sync with market demands. Therefore, we advise you that the content is subject to change and it can be dependent on student demand.
PERSONALIZE YOUR PROGRAM
After mastering the fundamentals, you’ll have the freedom to personalize your program, choosing from tracks specifically designed to address the needs of the market. Select the track that best suits your own career path from:
ECONOMICS FOR PUBLIC POLICY
This is the track for socially conscious professionals looking for a career where you’ll make an impact on large organizations such as the International Monetary Fund (IMF), the World Bank or national governments. In this track, you’ll study subjects such as health, education, labor economics, poverty and urban economics, giving you a comprehensive insight into the art of economic policy-making.
ECONOMIC ANALYSIS FOR CORPORATIONS
This track is for ambitious corporate leaders with the desire to master the more technical dimensions of economics. If you’re attracted to economic modeling, rigorous quantitative methods or the application of machine learning and data analytics to business, this is the track for you. Learn to wield the tools behind complex operations, asset management, investment modeling and the modern financial services industry, gaining in-demand skills that few people possess and placing you front and center for positions at the most prestigious companies worldwide.
ECONOMIC CONSULTANCY AND MARKET REGULATION
If you’re looking to work for some of the most competitive consulting companies in the world, you’ll need the strategic vision provided by this track. Combine your knowledge of M&A, pricing analysis, project evaluation and market dynamics to become a successful consultant. Completing this track will place you firmly in the headlights of the largest consulting firms in the world.
*Providing an enriching learning environment is one of our priorities. With this in mind, if only a small number of students enroll in a specific track, that track will not run that academic year.
CAPSTONE PARTNERS
For their final project, students of the Master in Applied Economics can choose between an individual, research-oriented thesis or a practical team-based Capstone Consulting Project. Underneath you can find capstone partners for the Master in Applied Economics.
NOTE: The partners listed here are from previous intakes. Partnering institutions may vary from year to year.
GET TO KNOW MORE ABOUT THIS MASTER PROGRAM
Daniel Fernández, Academic Director of the Master in Applied Economics & Vice-dean of Economics, explains in-depth this program.
IMMERSION WEEK EXPERIENCE
As part of your Master in Applied Economics, you will have the opportunity to be part of a one-week field trip where you will visit top companies in the field and get first-hand insights from leading industry experts. This is a great way to understand how these international organizations are tackling global challenges.
* Visits to organizations may vary from one year to another.
PARTNER UNIVERSITIES FOR THE EXCHANGES
You can personalize your program by spending an additional semester at one of our partner universities worldwide, following the third and final semester in Madrid. Our agreements with these institutions offer you the chance to gain international experience and expand your learning at some of the world's top universities.
NOTE: Spots are limited in all exchange programs. Upon acceptance into an exchange program, there is a fee for reserving your place, but tuition at the partner institution is free of charge. You'll only need to cover your living expenses while there.
UNIVERSITY OF ST. GALLEN
SCIENCES PO
UNIVERSIDAD DE SAN ANDRÉS
UNIVERSITY OF ICELAND
LUISS, ROMA
UNIVERSITY OF BOLOGNA (ITALY)
TECHNICAL UNIVERSITY OF MUNICH
Ashoka University
Central European University (CEU), Austria
Singapore Management University (SMU), Singapore
University of Milan
Hochschule für Politik München / Bavarian School of Public Policy
EUI (European University Institute)
Kautilya School of Public Policy
Frequently Asked Questions
What can I expect while studying the Master in Applied Economics?
The ten-month Master in Applied Economics begins with a focus on fundamentals such as macroeconomics, microeconomics and statistics, before advancing into practical and technical skills in the second term. The third and final term features a chosen specialization track.
What specialization can I choose during my Master in Applied Economics?
During the third and last term of the program, you can choose one of three specialization tracks: Economics for Public Policy, Economic Analysis for Corporations or Economic Consultancy and Market Regulation. This allows you to delve deeper into the area that interests you most while gaining deep knowledge and practical experience.
What experiences can I take part in during the Master in Applied Economics?
As part of the Master in Applied Economics, you can participate in Immersion Week, a one-week international field trip to visit top companies in various global hubs and gain firsthand insights from leading industry experts. Additionally, you can choose to spend an exchange semester abroad after your final term in Madrid. Our partner universities include Sciences Po, University of Bologna, University of Iceland and Singapore Management University, among others.
For the final project, you can choose between doing a research-oriented thesis or a practical consulting project alongside corporate partners such as BBVA and Caixa Bank, among others.
What skills do I need to apply for the Master in Applied Economics?
When applying for the Master in Applied Economics, it’s important to have a solid academic background with a high GPA in your undergraduate degree, or high grades in economics, statistics and math.
Can I take a semester to study abroad during the Master in Applied Economics?
After completing the final semester of the Master in Applied Economics in Madrid, you can choose to spend an additional semester studying abroad. Our agreements with global partner universities allow you to spend the exchange semester learning at one of eight top academic institutions around the world.
I don’t have a very mathematical or analytical background. Any tips to help me excel in the Master in Applied Economics?
The Master in Applied Economics is designed to give you a firm understanding of fundamental and advanced economic concepts, no matter your background. Through a blend of theory, case studies and quantitative methods, you’ll quickly find your footing in the program. It’s rigorous and challenging, but with some helpful tips from our current students , you’ll be ready to excel throughout your academic journey.