investment, particularly rehabilitation of public infrastructure to improve service delivery. The relief is invested uniformly across all sectors in accordance with the government public investment program (PIP).<sup>53</sup> The results of the simulations are provided in Table 3 below.

**Table 3: Simulation of Growth and Welfare Effects of Increased Public Spending under Fixed-Prices Multipliers Assumptions (Millions of US dollar)**

|**Variable Name**|**Value**<br>**before**<br>**Simulation**|**Value**<br>**after**<br>**Simulation**|**Percentage**<br>**Change**|
|---|---|---|---|
|**Production factors’ remuneration**||||
|Total remuneration of Unskilled Rural Labor|1 347.064|1 457.185|<br>8.17%|
|Total remuneration of Unskilled Urban Labor|1 368.916|1 473.042|<br>7.61%|
|Total remuneration of Skilled Labor|856.823|918.301|<br>7.18%|
|Total remuneration of Capital|5 229.584|5 698.564|<br>8.97%|
|**Incomes of Economic Agents**||||
|Rural Households of non tradable agricultural sector|1 600.108|1 733.811|<br>8.36%|
|Rural Households of tradable agricultural sector|143.592|155.195|<br>8.08%|
|Urban Unskilled Households working in informal sector|3 218.932|3 499.637|<br>8.72%|
|Urban Unskilled Households working in formal sectors|891.048|956.145|<br>7.31%|
|Urban Skilled Households|959.584|1 026.191|<br>6.94%|
|Capitalistic Households|902.373|978.227|<br>8.41%|
|Non Financial Companies|1 339.606|1 458.574|<br>8.88%|
|Commercial Banks|161.124|171.938|<br>6.71%|
|**Sectoral Production**||||
|Non Traded Rural Production|1 875.396|2 034.520|<br>8.48%|
|Traded Rural Production|770.624|808.382|<br>4.90%|
|Urban Informal Production|5 034.755|5 466.564|<br>8.58%|
|Urban Corporate Production|6 218.665|6 879.297|<br>10.62%|
|Public Sector Production|1 082.518|1 098.633|<br>1.49%|
|**Change in Financial Assets of Economic Agents**||||
|Rural Households of non tradable agricultural sector|17.259|18.699|<br>8.34%|
|Rural Households of tradable agricultural sector|7.845|8.458|<br>7.81%|
|Urban Unskilled Households working in informal sector|203.179|220.610|<br>8.58%|
|Urban Unskilled Households working in formal sectors|118.811|127.291|<br>7.14%|
|<br>Urban Skilled Households|157.912|168.669|<br>6.81%|
|Capitalistic Households|246.271|266.693|<br>8.29%|
|<br>Non Financial Companies|720.538|770.351|<br>6.91%|
|Commercial Banks|164.873|171.022|<br>3.73%|
|**GDP**|**8 802.386**|<br>**9 547.092**|<br>**8.46%**|

Source: Authors’ calculations.

Given the detailed structure of the financial SAM and the wealth of information provided by the Cameroon data, the simulated policy experiments allow us to assess the growth and income effects of increased public investment at the aggregate levels, but also at micro levels. In particular, the simulated effects of increased public investment are assessed on the overall economic growth rates, and across economic and institutional agents, looking specifically at

> 53 Naturally, within the framework of the PRSP process, the public investment program, which underpins the growth and poverty reduction strategies will have to be in aligned with the government priorities, which may emphasize both investment expenditures for sustainable growth in the medium and long-term, and recurrent spending to ensure improved and continued delivery of social services, especially to the poor and vulnerable groups.

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