Average treatment effect Created 2026-09-24 Updated 2026-11-05
The average treatment effect in a target population is , the average additive contrast between two potential outcomes. It does not require every individual effect to be the same. If half the population has effect two and half effect minus one, the average treatment effect is . Under consistency in causal inference, conditional exchangeability given pretreatment covariates , and positivity, it is identified by . The outer average uses the specified target population, not whichever group happens to be observed most often.
Average treatment effect on the treated Created 2026-09-24 Updated 2026-11-05
The average treatment effect on the treated is , averaging over those who actually receive treatment. Their untreated potential outcomes are counterfactual. This can differ from the average treatment effect when effects vary and treatment uptake changes the population mix. Under conditional exchangeability, consistency in causal inference and adequate untreated overlap, it equals . The second term standardizes untreated outcomes to the treated covariate distribution rather than using the crude untreated mean.
Causal effect Created 2026-09-24 Updated 2026-11-05
A causal effect compares potential outcomes under different specified interventions. For a binary treatment, a unit-level additive effect is . Only one of those outcomes is observed for a given unit, so an observed treated-versus-untreated difference is not automatically the effect. For example, patients receiving treatment can differ in baseline severity from untreated patients. The average treatment effect averages the contrast over a target population; identifying it from data requires assumptions linking treatment assignment and the unobserved potential outcomes.
Causal inference Created 2026-09-24 Updated 2026-11-05
Causal inference uses data and explicit assumptions to learn effects of specified interventions. For binary treatment , a target average treatment effect is , comparing potential outcomes for the same population. Observing only leaves one of each unit's potential outcomes unobserved.
An observed treated-minus-control difference can include confounding. For a concrete model, suppose half a population is in a low-baseline stratum with and half in a high-baseline stratum with . Let treatment probabilities be and in the two strata. Every unit's causal effect is one. The treated mean is , while the untreated mean is . Their observed difference is two because their stratum compositions differ.
Under conditional exchangeability, positivity and consistency in causal inference, outcome standardization identifies the effect by
In the example, using the same half-and-half target weights for both strategies recovers one. The substantive assumptions, rather than the arithmetic alone, justify interpreting the standardized contrast as an intervention effect.[ref]
Conditional average treatment effect Created 2026-09-24 Updated 2026-11-05
The conditional average treatment effect at pretreatment covariates is . It describes average effect variation between strata rather than identifying a particular individual effect. If in one equally common stratum and in another, the average treatment effect is . Under conditional exchangeability, consistency in causal inference and positivity, conditional outcome means identify . A predictor measured after treatment cannot simply be substituted for a pretreatment covariate without changing the causal question.
Donald Rubin Created 2026-10-25 Updated 2026-11-05
Donald Rubin's work connects Causal inference, missing data and Bayesian statistics. His Harvard profile lists Causal inference in experiments and observational studies, nonresponse in sample surveys, and Bayesian and empirical Bayesian methods as research interests.[ref]
The potential outcomes framework makes a causal comparison explicit by distinguishing the outcomes that would occur under alternative treatments. Only the outcome under the received treatment is observed for each individual, so identifying an average treatment effect requires design or modelling assumptions. In missing-data analysis, multiple imputation propagates uncertainty by analyzing several completed datasets and pooling their results with Rubin's rules. These ideas explain why filling in one convenient value and then treating it as observed generally understates uncertainty.
Figure 1.
Portrait of Donald B. Rubin
. Photograph of Donald B. Rubin linked from the Harvard Department of Statistics profile and labelled Don Rubin.
Doubly robust estimation Created 2026-09-24 Updated 2026-11-05
Doubly robust estimation combines two nuisance functions so that either one can be correctly estimated while the other is misspecified. For example, let indicate treatment, covariates, , and . Under conditional exchangeability, positivity and the usual consistency of observed and potential outcomes, is the mean potential outcome under treatment .
For candidate functions with denominators bounded away from zero, the augmented signal is
Conditioning on shows that
The bias vanishes if either nuisance function is correct. This algebra explains Double robustness and the second-order product bias. It does not protect against both models being wrong, failed Causal identification, or nearly zero denominators. cross-fitting helps when flexible functions are estimated from the same sample; valid confidence intervals require further rate and moment assumptions. The average treatment effect is .[ref]
Overlap weight Created 2026-09-24 Updated 2026-11-05
For binary treatment and propensity score , the observed-unit overlap weights are
Each unit receives the probability of assignment to the opposite group. These weights are bounded between zero and one.[ref]
The common target-population tilting function is instead . If the original covariate density is , then the unnormalized weighted densities in the two arms are equal:
Thus describes the target population, while are the arm-specific observation weights. Multiplying every observed unit by would not give this balance identity.
Under conditional exchangeability, consistency in causal inference and nonzero total overlap, the weighted contrast identifies the overlap-weighted average treatment effect
Units with deterministic treatment assignment have and contribute nothing to this target. The estimand therefore generally differs from the full-population average treatment effect.
Let and be the potential outcomes for the same individual under well-defined interventions setting the binary exposure to 1 and 0. The average treatment effect, also called the average causal effect on the additive scale, is
The average is over the target population. This compares hypothetical outcomes under two interventions, rather than the observed difference , which can be distorted by confounding. For binary , the displayed contrast is a causal risk difference. Consistency in causal inference and a well-defined intervention, including an appropriate no-interference in causal inference assumption, give these potential outcomes their meaning.
Let and let be a consistent estimate. The inverse-probability-weighted estimator of the average treatment effect is
Under the exchangeability, consistency, and positivity conditions in part ii, and consistent estimation of the propensity score, its probability limit is
so it consistently estimates the average treatment effect. It does not require the additive outcome-regression model used to interpret the ordinary-least-squares coefficient.
A sufficient causal condition is conditional exchangeability
together with consistency of potential outcomes and positivity in causal inference. For the ordinary-least-squares coefficient itself to equal one common causal effect, also require the correctly specified additive conditional-mean model
Then is the homogeneous treatment effect, and the adjusted coefficient consistently estimates both conditional effects and the average treatment effect in the analyzed population.
The no unmeasured confounding assumption, or conditional exchangeability, is
Also assume consistency of potential outcomes, no interference in causal inference, positivity in causal inference, and finite expectations. For , the law of total expectation, exchangeability, and consistency give
Positivity ensures that the observed conditional means exist on the covariate support being averaged. Subtracting the two cases identifies the average treatment effect as
Write
Since has no parents, its total effect has no backdoor path, and
For , intercepts every directed path to . Conditional on , there is no unblocked backdoor path from to , and blocks every backdoor path from to . The conditional front-door adjustment therefore gives
and
Part ii shows that the inner sum, after also averaging , does not actually depend on .
For , is a sufficient backdoor adjustment set. Hence
These three formulas identify the requested average treatment effects from the observed joint distribution.
Let
and
Because contains all exposure-outcome confounding and is independent of , the exclusion restriction and the law of total expectation give
Likewise,
The no confounder-instrument interaction assumption says is constant. Relevance gives , so the Wald ratio is
the overall average treatment effect.
The average treatment effect is more relevant than the average treatment effect on the treated because the contemplated policy changes treatment status for schools that are presently non-UTC, not merely the 43 schools that selected into existing UTC status. More precisely, the ideal target would be the average effect among the candidate schools the minister might convert; if that population is represented by all eligible schools, it is the ATE. An ATT from existing UTCs answers a narrower historical question and may not transport to the policy targets.
Randomized controlled trial Created 2026-09-24 Updated 2026-11-05
A randomized controlled trial assigns experimental units to competing treatments by a specified random mechanism and compares their outcomes. Under complete randomization of units, exactly receive assignment one and assignment zero. With fixed potential outcomes, each unit has assignment probability . Therefore
This proves design-unbiasedness of the mean difference for the finite-population average treatment effect, assuming consistency in causal inference and no interference in causal inference.
Randomization controls the assignment distribution; it does not force every realized baseline covariate difference to be zero. Equal assignment probabilities yield unconditional exchangeability in the design, whereas covariate-dependent randomization can require conditional exchangeability and an analysis respecting that design.[ref]
When assigned and received treatments differ, an intention-to-treat analysis estimates an assignment-policy effect. A treatment-receipt effect needs additional assumptions. Allocation concealment, blinded outcome assessment and handling of missing follow-up address other sources of distortion beyond random assignment itself.