Michael Davis

Associate Professor of Economics

Missouri University of Science and Technology (Formerly University of Missouri-Rolla)

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Contact Information:

 

Department of Economics

101 Harris Hall

301 W. 14th Street

Rolla, MO 65409-1250

d a v i s m c at m s t . e d u (without the spaces and @ to replace at)

573-341-6959

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Curriculum Vita:

 

CV

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Courses:

See Blackboard:

blackboard.mst.edu

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Research:

Selected Publications and Forthcoming Articles

Why Are Prices Sticky?The Dynamics of Wholesale Gasoline Prices (with James D. Hamilton)

Journal of Money, Credit and Banking, February 2004, vol. 36, pp. 17-37

Abstract:The menu-cost interpretation of sticky prices implies that the probability of a price change should depend on the past history of prices and fundamentals only through the gap between the current price and the frictionless price.We find that this prediction is broadly consistent with the behavior of 9 Philadelphia gasoline wholesalers.We nevertheless reject the menu-cost model as a literal description of these firmsí behavior, arguing instead that price stickiness arises from strategic considerations of how customers and competitors will react to price changes.

See a copy of the paper (pdf).

 

The Dynamics of Daily Retail Gasoline Prices

Managerial and Decision Economics, 2007, 28, 713-722.

Abstract:Previous research has analyzed the behavior of retail gasoline stations in how they adjust their prices.In this paper we analyze the daily movements in prices of four retail gasoline stations located in Newburgh, New York.We find some evidence to support the notion that the behavior is explained by menu costs.There is substantial evidence that the firms adjust their prices asymmetrically, being more inclined to increase than to decrease prices.We conclude that the pricing behavior is being determined by a combination of search costs for the consumers and menu costs for the producers.

See a working paper version of the paper (pdf).

 

Called up to the Big Leagues: An Examination of the Factors Affecting the Location of Minor League Baseball Teams

International Journal of Sport Finance, 2006, 1(4), 253-264.

Abstract:In this study we analyze the factors that determine whether a particular city has a minor league baseball team and the level at which that team competes.Using the Generalized Ordered Logit Model we determine that higher population, personal income and time from nearest major league baseball team all have a positive effect on the cityís having a minor league baseball team and having one at a higher level.The finding that personal income has a positive effect on the level of the baseball team, combined with past studies suggesting income does not affect minor league baseball attendance, leads us to conclude that higher income fans cannot take off more time to attend baseball games but want a higher quality product when they attend.Rankings of the most overrepresented and underrepresented cities, based on the model, are presented.

See a copy of the paper at the journal website.

 

Environmental Regulations and the Increasing Seasonality of Gasoline Prices

Applied Economics Letters, 2009, 16(16), 1613-1616.

Abstract:We analyze gasoline prices over the past 27 years and find that there has been an increase in the seasonal variation since 2000. This finding is attributed to an increase in the environmental regulations on gasoline during the summer months.

See a working paper version of the paper (pdf).

 

Income and the Locations of AAA Minor League Baseball Teams

Atlantic Economic Journal (Anthology), 2007, 35 (3), 371-372

Abstract:We analyze the factors that are important for determining whether a AAA baseball team exists in a particular city.†† After properly accounting for population in the model, income loses much of its significance but can not be completely discounted as an important factor.

See a working paper version of the paper (pdf).

 

A Winning Proposition: The Economic Impact of Successful NFL Franchises(with Christian End)

Economic Inquiry, 2010, 48(1), 39-50

Abstract:Research has demonstrated that a Super Bowl victory increases the personal income of the individuals in the metropolitan area from which the winning teams come (Coates & Humphreys, 2002).  We argue that the economic benefits should extend beyond just the championship teamís city to the cities of teams who experience seasonal success and thus the winning percentages of NFL teams were included in our model.  When controlling for sources of bias, winning percentage of the local professional football team had a significant positive effect on real per capita personal income.  Explanations for these conclusions are offered from a psychological perspective.

See a working paper version of the paper (pdf).

 

The Interaction between Baseball Attendance and Winning Percentage: A VAR Analysis

International Journal of Sport Finance, 2008, 3(1), 58-73.

Abstract:This study examines the importance of team success for attendance for major league baseball teams.Winning and attendance go together for most baseball teams, but the direction of causation is not obvious.Winning could lead to greater attendance as fans want to see a winner, while an increase in attendance could lead to greater winning as teamsí have greater resources to spend on salaries.This study finds that the direction of causation runs from team success to greater attendance, and that a sudden increase in fans does not lead to additional winning in the future.A secondary result suggests that exogenous shocks to attendance have replicating effects on attendance as well.

 

 

Selected Working Papers

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Links to Other Writing:

 

My blog:http://perfectlycompetitive.blogspot.com/

 

At RealClearSports (with Tim Kane):http://www.realclearsports.com/articles/author/michael_davis__tim_kane/

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Other Links:

Missouri S&T Department of Economics

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Last Modified: Wednesday ,September 17, 12:17 CDT

URL: http://www.mst.edu/~davismc/