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Fiscal Policy In Good Times And Bad

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Author Info
Roberto Perotti

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Abstract

In the 1980s several countries with large government debt or deficit implemented substantial, and in some cases drastic, deficit cuts. Contrary to widespread expectations, in many cases private consumption boomed rather than contracted. This paper shows that in times of "fiscal stress" shocks to government revenues and, especially, expenditure have very different effects on private consumption than in "normal" times. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 114 (1999)
Issue (Month): 4 (November)
Pages: 1399-1436
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Handle: RePEc:tpr:qjecon:v:114:y:1999:i:4:p:1399-1436

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This page was last updated on 2009-11-16.

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