John H. Cochrane

Rose-Marie and Jack Anderson Senior Fellow
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Biography: 

John H. Cochrane is the Jack and Rose-Marie Anderson 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

Nobel Symposium On Money And Banking Day 1

by John H. Cochrane featuring Darrell Duffie, Raghuram Rajanvia Grumpy Economist
Thursday, July 19, 2018

I attended the Nobel Symposium on Money and Banking in May, hosted by the Swedish House of Finance and Stockholm School of Economics. It was a very interesting event.

Analysis and Commentary

Health Care Competition?

by John H. Cochrane via Grumpy Economist
Tuesday, July 17, 2018

Continuing the health care series, there does come a time in which innovative disruptors can break open a protected market and bring some competition. Think Uber and taxis.

Featured

Cross Subsidies Again -- Hip Replacement Edition

by John H. Cochrane via Grumpy Economist
Sunday, July 15, 2018

From the Wall Street Journal, a familiar story of medical pricing mischief:" Michael Frank...had his left hip replaced in 2015. The Manhattan hospital charged roughly $140,000. The insurance company paid a discounted rate of about $76,000, and his share—a 10% copay, plus a couple of uncovered expenses—was a bit more than $8,000."

Analysis and Commentary

Loss Aversion

by John H. Cochrane via Grumpy Economist
Thursday, July 12, 2018

A frequent email correspondent asked "I’d love to hear your take on “loss aversion.” I just finished listening to Kahneman’s book." My response seems worth sharing with blog readers. 

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Toxic Tariffs

by John H. Cochrane via Hoover Digest
Monday, July 9, 2018

Tariffs impede trade and help only the privileged few, while raising prices for everybody else. What’s not to like?

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How to Fend Off Collapse

by Michael J. Boskin, John H. Cochrane , John F. Cogan, George P. Shultz, John B. Taylorvia Hoover Digest
Monday, July 9, 2018

The federal budget’s chilling forecast: annual deficits of a trillion dollars or more.

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Why Tax Rates Matter More Than Taxes

by John H. Cochrane , Richard A. Epsteinvia PolicyEd
Wednesday, June 27, 2018

Marginal tax rates – how much someone is taxed on the next dollar they earn – affect how much people work, save, and invest. Everyone is affected by their marginal tax rate, and lower marginal tax rates lead to more rapid economic growth.

Analysis and Commentary

Different Planets

by John H. Cochrane via Grumpy Economist
Thursday, June 14, 2018

A friend, who reads an unusually diverse set of sources, passed on some interesting pictures suggesting that our media live on different planets.

Featured

Cross-Subsidies

by John H. Cochrane via Grumpy Economist
Tuesday, June 12, 2018

Cross-subsidies are an under-appreciated original sin of economic stagnation. To transfer money from A to B, it would usually be better to raise taxes on A and to provide vouchers or otherwise pay competitive suppliers on behalf of B. But our political system doesn't like to admit the size of government-induced transfers, so instead we force businesses to undercharge B.

Analysis and Commentary

ACA Dropouts

by John H. Cochrane via Grumpy Economist
Monday, June 4, 2018

Half of the people who sign up for Obamacare (ACA) get a flurry of medical care, then drop out before a year is over. They can always sign up again if they need to. People who stay on insurance tend to be those who have ongoing chronic and expensive conditions that need continual care. The implications for the viability of such insurance are not good.

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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. . .