Nobel Prize winner speaks on housing market crash
Published: Tuesday, March 19, 2013
Updated: Tuesday, March 19, 2013 23:03
The 2002 Nobel Prize recipient Vernon L. Smith will deliver a lecture on the U.S. housing bubble collapse at 7 p.m. Wednesday in the Annenberg Presidential Conference Center.
“Vernon Smith introduced economists to a whole new way of figuring out how markets work,” said A&M economics professor Thomas Saving. “This new world we live in would not exist without him.”
Smith’s lecture will focus on the U.S. housing bubble and collapse, an episode that spanned from 1997-2012.
“Bubbles are commonplace in history, but severe episodes in the U.S. economy are rare and their collapse is not anticipated by economic and policy expert,” Smith said in a press release.
Smith said a number of recovery options are available, “none of them painless.”
Smith received his Ph.D. from Harvard University and has since received recognition for introducing experimental economics into his field, which involves testing the economic behavior of people in controlled environments and applying findings to real world situations.
Admission to Smith’s lecture, titled “Balance Sheet Crisis: Causes and Consequences” and part of the Eminent Scholar Lecture Series, is free and open to all students and faculty. Saving said the lecture might be of particular interest to students studying finance or electrical engineering.