Photo of Erich Muehlegger

Erich Muehlegger is an Associate Professor of Economics at the University of California, Davis, and a research associate of the National Bureau of Economic Research.

His research interests include industrial organization, public finance, economic regulation, and environmental policy.

Muehlegger received his BA from Williams College in 1997 and his PhD from MIT in 2005. He taught at the Harvard Kennedy School from 2005-2014 and has taught at UC Davis since 2014.

 

 

 

Recent Research Highlights

Pass-Through of Own and Rival Cost Shocks: Evidence from the U.S. Fracking Boom (with Richard Sweeney), conditionally accepted at Review of Economics and Statistics

In imperfectly competitive settings, a firm’s price depends on its own costs as well as those of its competitors. Richard Sweeney and I demonstrate that this has important implications for the estimation and interpretation of pass-through. Leveraging a large input cost shock resulting from the fracking boom, we isolate price responses to firm-specific, regional and industry-wide input cost shocks in the US oil refining industry. The pass-through of these components vary from near zero to full pass-through, reconciling seemingly disparate results from the literature. We illustrate the policy implications of rival cost pass-through in the context of a tax on refinery carbon emissions.