Rethinking Housing Bubbles: The Role of Household and Bank Balance Sheets in Modeling Economic CyclesBalance sheet crises, in which the prices of widely held and highly leveraged assets collapse, pose distinctive economic challenges. An understanding of their causes and consequences is only recently developing, and there is no agreement on effective policy responses. From backgrounds in experimental economics, Steven Gjerstad and Nobel laureate Vernon L. Smith examine events that led to and resulted from the recent U. S. housing bubble and collapse,