John H. Cochrane

Rose-Marie and Jack Anderson Senior Fellow
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

Interviews

Economist John Cochrane Is Still Worried About the Debt

interview with John H. Cochranevia Reason
Friday, July 23, 2021

Hoover Institution fellow john Cochrane discusses US debt and what it means for our future especially since the U.S. national debt held by the public is currently almost $22 trillion, or about $67,000 per citizen, surpassing the country's annual GDP for the first time since World War II.

Analysis and Commentary

Climate Risk To The Financial System

by John H. Cochranevia The Grumpy Economist
Wednesday, July 21, 2021

I wrote a piece for Project Syndicate, here, on climate financial risk. (This resulted from a presentation on a panel at the NBER summer institute risks of financial institutions meeting, program here. There should be a video version on YouTube but I can't find it. The panel discussion was excellent. You will recognize ideas from my earlier climate finance testimony. I recycle and refine.)

Featured

The Fallacy Of Climate Financial Risk

by John H. Cochranevia Project Syndicate
Wednesday, July 21, 2021

The idea that climate change poses a threat to the financial system is absurd, not least because everyone already knows that global warming is happening and that fossil fuels are being phased out. The new push for climate-related financial regulation is not really about risk; it is about a political agenda.

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Rossi-Hansberg On The Effects Of A Carbon Tax

by John H. Cochranevia The Grumpy Economist
Monday, July 12, 2021

I was inspired to think again about climate economics from Esteban Rossi-Habnsberg's excellent presentation at the  Hoover Economic Policy Working Group.

Featured

The End Of ‘The End Of Inflation’

by John H. Cochranevia Chicago Booth Review
Friday, July 9, 2021

Inflation can no longer be dismissed as only a concern of the past.

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How Much Does Climate Change Actually Affect GDP? Part I: An Illogical Question.

by John H. Cochranevia Grumpy Economist
Thursday, July 8, 2021

How much does climate change* actually affect GDP? How much will currently-envisioned climate policies reduce that damage, and thereby raise GDP? As we prepare to spend trillions and trillions of dollars on climate change, this certainly seems like the important question that economists should have good answers for.

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Lessons Learned? Review Of A Great Review.

by John H. Cochranevia The Grumpy Economist
Wednesday, July 7, 2021

After great events, will the US government and political system learn from mistakes? Or will we raise the bridges and enshrine whatever was done last time as holy writ, to be repeated again? Reputations of people in power push for the latter. But learning from mistakes is the only way to get ahead.

Policy InsightsFeatured

State Budget Woes

featuring Joshua D. Rauh, Lee Ohanian, Michael J. Boskin, John H. Cochrane, Richard A. Epstein, Daniel Heilvia PolicyEd
Thursday, July 1, 2021

State and local officials continue to face significant budget challenges that predate the pandemic. What are these budget challenges and what can state lawmakers do to address them?

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Fast Grants And The Economics Of Subsidizing Science

by John H. Cochranevia The Grumpy Economist
Wednesday, June 30, 2021

One of the great insights of modern growth theory -- Paul Romer's Nobel Prize -- is that ideas are the foundation of economic growth. Ideas are also "nonrivial." If you use my car, I can't use it, but if you use our family recipe for road-oil chocolate cake (yum), we can still enjoy it as much as ever. Once an idea has been had, economics says it should be used as widely as possible as soon as possible

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That ‘70s Show

interview with John H. Cochrane, Niall Ferguson, H. R. McMastervia GoodFellows: Conversations From The Hoover Institution
Tuesday, June 29, 2021

To the adage of repeating the past, does a stretch of inflation at home, the end of prolonged military involvement in a faraway land, and a president lamenting a nation in crisis suggest a return to the America of the 1970s? Hoover Institution senior fellows Niall Ferguson, H. R. McMaster, and John Cochrane discuss the differences between then and now—after sharing photos showcasing their ’70s finery.

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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. . .