Applied Economics

Universidad Carlos III de Madrid

Course Description

  • Course Name

    Applied Economics

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Business Administration, Economics, International Economics, Peace and Conflict Studies

  • Language Level

    Taught In English

  • Course Level Recommendations


    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

  • Recommended U.S. Semester Credits
  • Recommended U.S. Quarter Units
  • Overview

    This is an introductory course to applied research in Economics. Linear econometric techniques together with the required programming skills will be studied. Actual examples of influential studies will be presented, and in some cases, replicated in computer sessions.

    Topic 1: Data Management and linear regression: Linear regression model : Interpretation of parameters , basic assumptions and
    estimation by ordinary least squares ( OLS). Variance estimators , asymptotic properties . Model interpretation . Hypothesis testing . Use and organization of gretl databases . Gretl regression .

    Topic 2: Instrumental Variables: Endogenous explanatory variables . Consequences on estimation and inference. Valid instruments. Tests of endogeneity and overidentifying restrictions .

    Topic 3: Causation and Experimental data: Potential Outcomes . Randomization . The mean treatment effect . The mean treatment effect for the treated. The Difference Estimator and biases . The Assumption of Exogeneity . Regression and Causation . The Assumption of selection based on observables. The OLS estimator as average treatment effect .

    Topic 4: Policy Evaluation. Pooled Data with Cross Sections: Natural experiments. The OLS estimator as difference-in-differences estimator. Panel data. Unobservable heterogeneity. First difference estimator. IV Estimator. Regression with discontinuity.

Course Disclaimer

Please note that there are no beginning level Spanish courses offered in this program.

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.


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