John H. Cochrane has won the 2001 Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security for his book Asset Pricing. Cochrane is the Theodore O. Yntema Professor of Finance at the University of Chicago Graduate School of Business.
The award is given by the TIAA-CREF Institute, the research and educational arm of TIAA-CREF, a pension system for people employed in education and research in the U.S.
Named in honor of the Nobel laureate economist and University of Chicago alumnus Paul A. Samuelson, the award is given each year in recognition of an outstanding research publication containing ideas that the public and private sectors can use to maintain and improve Americans' financial well-being.
"I am deeply honored to receive the award," Cochrane said. "This book is very much a product of the fantastic intellectual environment for finance and economics at the University of Chicago," he said. "It would have never happened on my own."
In his book, Cochrane presents a unified approach to theory and empirical work. He shows how a single idea, price equals expected discounted payoff, underlies the valuation of all assets and underlies procedures for evaluating asset valuation models. The book includes a review of current empirical work and looks at how theories are being developed to address unresolved issues in asset pricing.
Cochrane shares the award with Christian Gollier, a professor of economics at the University of Toulouse, who won for his book The Economics of Risk and Time.
Cochrane will receive the award at the annual meeting of the Allied Social Science Association, January 4 in Atlanta.
Cochrane's research activities include finance, macroeconomics, and monetary economics. During the winter quarter, he is teaching the course, "Money and Inflation."
He is director of the asset pricing program and a research associate at the National Bureau of Economic Research and an editor of the Journal of Political Economy.
Cochrane joined the GSB faculty in 1994, having previously taught in the University of Chicago Department of Economics. He received a PhD in economics from the University of California, Berkeley in 1986. Earlier he received an S.B. in physics from the Massachusetts Institute of Technology.
Nicholas Barberis, associate professor of finance at Chicago GSB, won the Paul A. Samuelson Award last year.
The University of Chicago Graduate School of Business is one of the oldest and largest business schools in the world. It offers full-time and part-time MBA programs, a PhD program, and open enrollment executive education.