Conditional average treatment effect (CATE)

The conditional average treatment effect at pretreatment covariates $X=x$ is $\tau (x)=\mathbb{E}[Y(1)-Y(0)\mid X=x]$. It describes average effect variation between strata rather than identifying a particular individual effect. If $\tau (x)=2$ in one equally common stratum and $-1$ in another, the average treatment effect is $1/2$. Under conditional exchangeability, consistency in causal inference and positivity, conditional outcome means identify $\tau (x)$. A predictor measured after treatment cannot simply be substituted for a pretreatment covariate without changing the causal question.

The overlap-weighted average treatment effect averages the conditional average treatment effect with weight proportional to $e(X)\{1-e(X)\}$, where $e(X)$ is the propensity score. It emphasizes covariate strata in which both treatments are plausible.