Perotti, Roberto creator text xu| 1999 continuing ng p.1399-436 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. - Reproduced Fiscal policy Quarterly Journal of Economics 180718