The determination of college students' academic performance is an important issue in higher education. Whether students' attendance at lectures affects students' exam performance has received considerable attention. The authors conduct a randomized experiment to study the average attendance effect for students who choose to attend lectures, which is known in program evaluation literature as the average treatment effect on the treated. This effect has long been neglected by researchers when estimating the impact of lecture attendance on students' academic performance. Under the randomized experiment approach, the results suggest that class attendance has a positive and significant impact on college students' exam performance. On average, the effect of attending lectures corresponds to a 9.4 percent to 18.0 percent improvement in exam performance for those who choose to attend classes. In comparison, the improvement is only 5.1 percent, using the empirical method of existing studies, which measures the overall average attendance impact.

This study considers the effect of cumulative class attendance while estimating the relationship between class attendance and students' exam performance, using an individual-level data. We find that, cumulative attendance has produced a positive and significant impact on students' exam performance. Attending lectures corresponds to a 4% improvement in exam performance, and the marginal impact of cumulative attendance on exam performance is also close to 4%. It is of note that the impact of attendance on exam performance is reduced about 0.4% after one controls for the cumulative attendance effect.

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We conduct an empirical investigation of the impact of prenatal care-giver advice on alcohol consumption by pregnant women. In the design of the model and estimator, we pay particular attention to three aspects of the data. First, a large proportion of pregnant women do not drink at all. To accommodate this aspect of the sample we base the essential formulation of the model on the modified version of the two-part approach of Duan et al. (Journal of Business and Economic Statistics 1983; 1: 115-126.) suggested by Mullahy (Journal of Health Economics 1998; 17: 247-281.). Second, in the survey that we analyze (the 1988 National Maternal and Infant Health Survey - NMIHS), respondents were only required to report their consumption up to a specified range of values (e.g. 1-2 drinks per week, 2-5 drinks per week, and so on). For this reason, the model is cast in the grouped regression framework of Stewart (Review of Economic Studies 1983; 50: 141-149.). Third, the binary physician advice variable is likely to be endogenous and the econometric specification explicitly accounts for this possibility. To summarize the results, we find that failing to account for endogeneity leads to the counterintuitive conclusion that advice has a positive and statistically significant influence on drinking during pregnancy. When the model is extended to allow for potential endogeneity, we find that advice has a negative and statistically significant impact.