Fiscal Policy in Good Times and Bad

1999/11/01 by Roberto Perotti, R. Perotti · 4 citations
Economics, Econometrics and Finance · Business, Management and Accounting · #Fiscal Policies and Political Economy #Monetary Policy and Economic Impact #Financial Literacy, Pension, Retirement Analysis

paper · doi:10.1162/003355399556304

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.

Citations

• Econometric Issues in the Analysis of Regressions with Generated Regressors

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