About: Local average treatment effect

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In econometrics and related fields, the local average treatment effect (LATE), also known as the complier average causal effect (CACE), is the effect of a treatment for subjects who comply with the treatment assigned to their sample group. It is not to be confused with the average treatment effect (ATE), which includes compliers and non-compliers together. The LATE is similar to the ATE, but excludes non-compliers. The LATE can be estimated by a ratio of the estimated intent-to-treat effect and the estimated proportion of compliers, or alternatively through an instrumental variable estimator.

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  • In econometrics and related fields, the local average treatment effect (LATE), also known as the complier average causal effect (CACE), is the effect of a treatment for subjects who comply with the treatment assigned to their sample group. It is not to be confused with the average treatment effect (ATE), which includes compliers and non-compliers together. The LATE is similar to the ATE, but excludes non-compliers. The LATE can be estimated by a ratio of the estimated intent-to-treat effect and the estimated proportion of compliers, or alternatively through an instrumental variable estimator. The LATE was first introduced by Guido W. Imbens and Joshua D. Angrist in 1994, who shared one half of the 2021 Nobel Memorial Prize in Economic Sciences. As summarized by the Nobel Committee, the LATE framework "significantly altered how researchers approach empirical questions using data generated from either natural experiments or randomized experiments with incomplete compliance to the assigned treatment. At the core, the LATE interpretation clarifies what can and cannot be learned from such experiments." (en)
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  • In econometrics and related fields, the local average treatment effect (LATE), also known as the complier average causal effect (CACE), is the effect of a treatment for subjects who comply with the treatment assigned to their sample group. It is not to be confused with the average treatment effect (ATE), which includes compliers and non-compliers together. The LATE is similar to the ATE, but excludes non-compliers. The LATE can be estimated by a ratio of the estimated intent-to-treat effect and the estimated proportion of compliers, or alternatively through an instrumental variable estimator. (en)
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  • Local average treatment effect (en)
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