John H. Cochrane

Senior Fellow
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Biography: 

John H. Cochrane is a senior fellow at the Hoover Institution. He is also a research associate of the National Bureau of Economic Research and an adjunct scholar of the CATO Institute. 

Before joining Hoover, Cochrane was  a Professor of Finance at the University of Chicago’s Booth School of Business, and earlier at its Economics Department. Cochrane earned a bachelor’s degree in physics at MIT and his PhD in economics at the University of California at Berkeley. He was a junior staff economist on the Council of Economic Advisers (1982–83).

Cochrane’s recent publications include the book Asset Pricing and articles on dynamics in stock and bond markets, the volatility of exchange rates, the term structure of interest rates, the returns to venture capital, liquidity premiums in stock prices, the relation between stock prices and business cycles, and option pricing when investors can’t perfectly hedge. His monetary economics publications include articles on the relationship between deficits and inflation, the effects of monetary policy, and the fiscal theory of the price level. He has also written articles on macroeconomics, health insurance, time-series econometrics, financial regulation, and other topics. He was a coauthor of The Squam Lake Report. His Asset Pricing PhD class is available online via Coursera. 

Cochrane frequently contributes editorial opinion essays to the Wall Street Journal, Bloomberg.com, and other publications. He maintains the Grumpy Economist blog.

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Recent Commentary

Featured

YIMBY Papers

by John H. Cochrane via Grumpy Economist
Monday, May 22, 2017

Two new papers on housing restrictions are noteworthy, Housing Constraints and Spatial Misallocation by Chang-Tai Hsieh and Enrico Moretti, and The Economic Implications of Housing Supply by Ed Glaeser and Joe Gyourko. ....zoning and other restrictions drive up the cost of housing...

Featured

Wild Health Care Proposal

by John H. Cochrane via Grumpy Economist
Thursday, May 18, 2017

I found a lovely post on health care full of wild ideas at market-ticker.org. You may not agree with all the proposals -- wild even by my standards. But it is full of interesting detail on what's wrong with the microeconomics of health care delivery, as opposed to the usual focus on health insurance, and who pays, ignoring the vast dysfunction of the underlying market.

A Better R*

by John H. Cochrane via Grumpy Economist
Tuesday, May 16, 2017

The Chicago Booth Review published a much cleaned up and nicely formatted version of my earlier blog post on r*. If you missed the original and you're curious about r* issues, or just curious what the heck r* is anyway, this version is better.

Analysis and Commentary

Long Run Money

by John H. Cochrane via Grumpy Economist
Tuesday, May 16, 2017

Continuing in the Il Sole series on Italy and the Euro, Alberto Bagnai writes that the euro is a "big defeat for the economics profession''. He takes particular issue with my earlier case for a common currency.

Interest Rates
Featured

What Target Should The Fed Be Shooting At?

by John H. Cochrane via Chicago Booth Review
Tuesday, May 16, 2017

The conventional wisdom on interest rates may be wrong.

Analysis and Commentary

Fintech And Shadow Banks

by John H. Cochrane via Grumpy Economist
Tuesday, May 9, 2017

"Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks" is an interesting new paper by Greg Buchak, Gregor Matvos, Tomasz Piskorski, and Amit Seru.

Analysis and Commentary

A Healthy Reform?

by John H. Cochrane via Grumpy Economist
Sunday, May 7, 2017

Holman Jenkins and Cliff Asness have worthy commentaries on the health insurance reform effort. Jenkins has quite a few fresh thoughts. He also gets the incurable optimist award for viewing the bill as the "inklings of a salvation" for America’s health-care system. It's possible. Whether it is likely depends on your views of the political process.

Analysis and Commentary

Wonderful Loaf

by John H. Cochrane via Grumpy Economist
Thursday, May 4, 2017

A charming animated free-market poem by Russ Roberts, on the invisible hand, is now available online.

Analysis and Commentary

Douthat And Feldstein On Euro

by John H. Cochrane via Grumpy Economist
Tuesday, May 2, 2017

In case you missed it, this Sunday featured a creditable effort by the NY Times to look out of the groundhog hole. You have likely followed the explosion resulting from Bret Stephens' first column. Likewise, Ross Douthat tried to explain the attraction of Marie LePen. I'm not a LePen fan, but appreciated his honest effort to explain how the other side say things.

Analysis and Commentary

WalBank

by John H. Cochrane via Grumpy Economist
Tuesday, May 2, 2017

Arnold Kling's Askblog quotes Robert J. Mann, "Wal-Mart’s application to form a bank ignited controversy among disparate groups, ranging from union backers to realtor’s groups to charitable organizations. The dominant voice, though, was that of independent bankers complaining that the big-box retailer would drive them out of business. Wal-Mart denied any interest in competing with local banks by opening branches, claiming that it was interested only in payments processing."

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Current Online Courses

Asset Pricing, Part 1, via Coursera and the University of Chicago

This course is part one of a two-part introductory survey of graduate-level academic asset pricing. We will focus on building the intuition and deep understanding of how the theory works, how to use it, and how to connect it to empirical facts. This first part builds the basic theoretical and empirical tools around some classic facts. The second part delves more deeply into applications and empirical evaluation. Learn more. . .