"The Minister of Finance of an African country needs to reallocate the country's public investment to help achieve the Millennium Development Goals (MDGs) of halving the proportion of the poor and hungry by 2015: Should the minister increase investment in health and education, with the view that...

This paper investigates industry-level effects of government purchases in order to shed light on the transmission mechanism for government spending on the aggregate economy. We begin by highlighting the different theoretical predictions concerning the effects of government spending on industry...