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

In the News

AOC Wants To Soak The Rich. Here's Why That's A Bad Idea.

quoting John H. Cochranevia Chicago Tribune
Wednesday, February 6, 2019

Every so often, a rising young Democratic star comes along with an idea that boldly challenges the status quo. Today, it’s Rep. Alexandria Ocasio-Cortez of New York, who wants to raise the top income tax rate. In 1982 it was Sen. Bill Bradley of New Jersey, who proposed an overhaul of income taxes that “seemed revolutionary and impossible,” The Washington Post said in 1986.

In the News

SOTU Review: The 6 Big Domestic Policies Trump Proposed

quoting John H. Cochranevia Conservative Review
Wednesday, February 6, 2019

President Trump’s second State of the Union address was intended to lay out a legislative agenda for divided government. Knowing that the House of Representatives is under Speaker Nancy Pelosi’s control, Trump attempted to strike a unifying and bipartisan tone and invited Democrats to work with him to benefit the country.

Featured

The Death Of The Healthcare Market

by John H. Cochranevia Grumpy Economist
Wednesday, January 30, 2019

People really do not need health insurance for regular small expenses, as they do not need car insurance to "pay for" oil changes. And any insurance system relies on an underlying cash market to find what the right prices are. Collision insurance works reasonably well because there is a supply and demand market for auto repair in which people pay their own money and there are competitive suppliers and free entry, offering services along a wide quality-price spectrum.

In the News

Administrative Procedure Act Limitations: Cost Measurement and Disclosure

quoting John H. Cochranevia Competitive Enterprise Institute
Wednesday, January 30, 2019

U.S. Circuit Judge J. Harvie Wilkinson III noted in a 2017 journal article that regulation sometimes contains “too much detail,” changes too “frequently and capriciously,” creates backlogs and delay of work and decisions, or even results in “imperiousness” and “jerk[ing] people around.”

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The Curse of the Cross-Subsidies

by John H. Cochranevia Hoover Digest
Friday, January 25, 2019
Today we subsidize health care for those who can’t pay and overcharge the rest. A free market in health care would do neither.
Analysis and Commentary

Privatize TSA And ATC!

by John H. Cochranevia Grumpy Economist
Friday, January 25, 2019

In the aftermath of 9/11, there was some debate whether TSA should be federal employees, or run privately, and paid for by airlines. Government does not have to actually employ people in order to regulate, supervise, and make sure standards are followed.

Policy InsightsFeatured

Policy Insights: Free Trade

featuring Milton Friedman, John B. Taylor, John H. Cochrane, Edward Paul Lazear, Michael J. Boskin, Richard A. Epstein, Russell Roberts, Tom Churchvia PolicyEd
Wednesday, January 23, 2019

After a generation of trade liberalizations, many Americans—on the left and the right—are having second thoughts.

Analysis and Commentary

Carbon Tax Update

by John H. Cochranevia Grumpy Economist
Monday, January 21, 2019

An interesting question emerged from some discussion surrounding my last carbon tax post. How big will the tax be? The letter says $40 a ton, but then rising. But how far? And in response to what question? It occurs to me that the two obvious targets lead to radically different answers.

Analysis and Commentary

Lend The Shutdown?

by John H. Cochranevia Grumpy Economist
Monday, January 21, 2019

The Federal Government seems to be obeying with rather remarkable accuracy the constitutional mandate that the government may not spend money that has not been appropriated by Congress. I would be curious to hear from legal experts, however, what stops the government from lending money to federal employees, or just guaranteeing loans.

Featured

Volalitily, Now The Whole Thing

by John H. Cochranevia Grumpy Economist
Monday, January 14, 2019

An essay at The Hill on what to make of market volatility, from Dec 31. Now that two weeks have passed, I can post the whole thing. I add some graphs too. (Though at the rate things are going any forecast will have been proved wrong in two weeks!) What’s causing the big drop in the stock market, and the bout of enormous volatility we’re seeing at the end of the year?

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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. . .