John H. Cochrane

Rose-Marie and Jack Anderson Senior Fellow
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Biography: 

John H. Cochrane is the Rose-Marie and Jack 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

Two Videos

by John H. Cochrane via The Grumpy Economist
Thursday, May 16, 2019

My Hoover colleague Russ Roberts just finished a nice video on inequality. Among other takeaways, he stresses that the people who were rich in 1980 are not the same people or even families who are rich now. It is not true that "the rich got richer." He also tracks individuals through time, and poor individuals got richer to. There is a lot more economic mobility in the US than the standard talking points.

Friedman FundamentalsFeatured

Fellows With Friedman

featuring John H. Cochrane , Michael J. Boskin, David R. Henderson, Thomas Sowell, Richard A. Epstein, Alvin Rabushka, Robert E. Hallvia PolicyEd
Thursday, May 16, 2019

In a Wall Street Journalop-ed, “America Needs an Alternative Maximum Tax,” John Cochrane proposes a new kind of tax that caps the amount that people would pay in taxes to prevent indefinite tax-rate hikes. He asks, “How much is the most anyone should have to pay? When do taxes indisputably start to harm the economy and produce less revenue—when government takes 50% of people's income? 60%? 70%?” If there is a maximum amount that an individual pays, then once past that cap they wouldn’t pay any further federal income tax for that year.

Featured

Almost Sane Housing Supply

by John H. Cochrane via Grumpy Economist
Tuesday, May 14, 2019

California, despite being a one-party state, is actively debating SB50 that would over-ride local zoning laws and allow construction of apartment buildings, especially near transit areas.

Featured

Free Solo And Economic Growth

by John H. Cochrane via The Grumpy Economist
Monday, May 13, 2019

We recently watched "Free Solo", the great movie about Alex Honnold's free (no aids, no ropes) solo climb of El Capitan. Among many other things, it got me thinking about economic growth.

Featured

Financial Inflation?

by John H. Cochrane via Grumpy Economist
Friday, May 10, 2019

Torsten Slok sends this lovely picture of the S&P500 and the price index for portfolio management and investment advice services. Torsten explains that "50% of the decline in core PCE inflation since the peak in July has been driven by financial services, and with the stock market rebounding, we should expect to see the financial services component move higher again."

Featured

Rent Control Poem

by John H. Cochrane via Grumpy Economist
Thursday, May 9, 2019

"Kevinsch" posts an remarkable essay on rent control on a Seattle city council blog (HT Marginal Revolution).

Featured

Jenkins On ACA

by John H. Cochrane via Grumpy Economist
Wednesday, May 8, 2019

Holman Jenkins "Obamacare is popular because it failed" from a week ago is worth savoring and has an interesting new idea.

Analysis and Commentary

Ip On Carbon Tax

by John H. Cochrane via Grumpy Economist
Tuesday, May 7, 2019

Over the weekend, Greg Ip at WSJ wrote a nice piece on the carbon tax. Greg addresses some common objections. This urge to stop at nothing to find an effective solution is understandable. How can you put a price tag on the future of the planet?

Analysis and Commentary

The Fiscal Roots Of Inflation

by John H. Cochrane via The National Bureau Of Economic Research
Tuesday, May 7, 2019

Unexpected inflation devalues nominal government bonds. This change in value must correspond to a change in expected future surpluses, a change in their discount rates, or a contemporaneous change in nominal bond returns.

Featured

Smith, MMT, And Science In Economics

by John H. Cochrane via Grumpy Economist
Sunday, May 5, 2019

Many blog readers have asked for my opinions of "Modern Monetary Theory." I haven't written yet, because I try to read about things in some detail, ideally from original sources, before reviewing them, which I have not done. Life is short.

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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. . .