John C. Heaton on Measuring Long-Run Risk


Booth School of Business
Deputy Dean for Faculty and Joseph L. Gidwitz Professor of Finance

John C. Heaton studies asset pricing, portfolio allocation, and time-series econometrics. He first became drawn to this area because he was "intrigued by the idea of understanding economic phenomena both to guide policy and to help people make better decisions." His research in these areas has earned him numerous fellowships, including an Alfred P. Sloan Research Fellowship from 1993 to 1995, and a National Science Foundation Fellowship from 1993 to 1998.

Prior to joining the Chicago Booth faculty in 2000, Heaton was the Nathan S. and Mary P. Sharp Distinguished Professor of Finance at Northwestern University''s Kellogg School of Management. He also has held positions at MIT''s Sloan School of Management and at the Hoover Institution. Heaton is a research associate of the National Bureau of Economic Research. The practical problems investors and institutions face are a key component of his teaching.

Originally from Canada, Heaton earned a bachelor''s degree in commerce at the University of Windsor in 1982, a master''s degree in economics from the University of Western Ontario in 1984, and a PhD in economics from the University of Chicago in 1989. He joined the Chicago Booth faculty in 2000. Outside of academia, Heaton enjoys music, skiing, and sailing.


With Deborah Lucas, "Evaluating the Effects of Incomplete Markets on Risk Sharing and Asset Pricing," Journal of Political Economy (June 1996).

With Deborah Lucas, "Market Frictions, Savings Behavior and Portfolio Choice," Macroeconomic Dynamics (1997).

With Deborah Lucas, "Portfolio Choice and Asset Prices; The Importance of Entrepreneurial Risk," Journal of Finance (2000).

With L. P. Hansen and N. Li, "Consumption Strikes Back? Measuring Long-Run Risk," Journal of Political Economy (April 2008).

Read about executive education

Other experts

Expertise Topics Agricultural Policy, Trade and Commodities Corruption and Transnational Crime Developing Nations Economics Economic Development Globalization Food Security Foreign Aid and American Foreign Policy Foreign Aid and Global Poverty Governance International Debt Nation-building and D...
Academic Division: History & SocietyDr. Hauf has taught at Auburn University and at Wesleyan University in the areas of traditional and modern China. Dr. Hauf''s thesis at Yale covered Ming-Quing China (1368-1911). A related minor field was Chinese intellectual history to 1279 A.D. She is a c...
Max Bruche received his PhD in Finance from the London School of Economics and holds a BA in Politics, Philosophy and Economics and MPhil in Economics, both from Oxford University. He has previously worked at the Centro de Estudios Monetarios y Financieros (CEMFI) in Madrid, and has held visiting...