John H. Cochrane

Senior Fellow
Research Team: 

John H. Cochrane is a senior fellow at the Hoover Institution. He is currently the AQR Capital Management Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business. He is also a research associate of the National Bureau of Economic Research and an adjunct scholar of the CATO Institute.

Before joining the Booth School in 1994, Cochrane was at the Economics Department of the University of Chicago. 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.

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

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Recent Commentary


A New Structure For U.S. Federal Debt

by John H. Cochrane via Grumpy Economist
Thursday, March 26, 2015

I propose a new structure for U. S. Federal debt. All debt should be perpetual, paying coupons forever with no principal payment.


Jumps And Diffusions

by John H. Cochrane via Grumpy Economist
Tuesday, March 24, 2015

I learned an interesting continuous time trick recently. The context is a note, "The fragile benefits of endowment destruction" that I wrote with John Campbell, about how to extend our habit model to jumps in consumption.


Hospital Supply

by John H. Cochrane via Grumpy Economist
Monday, March 23, 2015

In my view, health care supply restrictions are more important than the insurance or demand features that dominate public discussion.


Borio, Erdem, Filardo And Hofmann On The Costs Of Deflation

by John H. Cochrane via Grumpy Economist
Friday, March 20, 2015

Claudio Borio, Magdalena Erdem, Andrew Filardo and Boris Hofmann have a nice paper, "The costs of deflations: a historical perspective"


Levine On The Keynesian Illusion

by John H. Cochrane via Grumpy Economist
Thursday, March 19, 2015

Some big themes: Standard Keynesian economics violates budget constraints. He explains it well, but it is sure to occasion the usual venom from with the "Say's law fallacy" brigade that has a lot of trouble understanding the difference between budget constraints and equilibrium conditions.

Oil Drilling

Arezki, Ramey, And Sheng On News Shocks

by John H. Cochrane via Grumpy Economist
Wednesday, March 18, 2015

I attended the NBER EFG (economic fluctuations and growth) meeting a few weeks ago, and saw a very nice paper by Rabah Arezki, Valerie Ramey, and Liugang Sheng, "News Shocks in Open Economies: Evidence from Giant Oil Discoveries" (There were a lot of nice papers, but this one is more bloggable.)


Duffie And Stein On Libor

by John H. Cochrane via Grumpy Economist
Monday, March 16, 2015

Darrell Duffie and Jeremy Stein have a nice paper, "Reforming LIBOR and Other Financial-Market Benchmarks" I learned some important lessons from the paper and discussion.


Mankiw On Dynamic Scoring

by John H. Cochrane via Grumpy Economist
Wednesday, March 4, 2015

The issue: When the congressional budget office "scores" legislation, figuring out how much it will raise or lower tax revenue and spending, it has been using "static" scoring.

Interest Rates

Doctrines Overturned

by John H. Cochrane via Grumpy Economist
Saturday, February 28, 2015

Everyone is hanging on will-she or won't-she raise rates by 25 basis points. I think this focus misses the more interesting questions for current monetary policy.


On RRP Pro And Con

by John H. Cochrane via Grumpy Economist
Wednesday, February 25, 2015

Thanks to a comment on the last post, I found The Fed working paper explaining Fed's thinking about overnight reverse repurchases, Overnight RRP Operations as a Monetary Policy Tool: Some Design Considerations by Josh Frost, Lorie Logan, Antoine Martin, Patrick McCabe, Fabio Natalucci, and Julie Remache.


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. . .