The authors observed few sectors with many connections and many sectors with few connections, “in the Brazilian input-output network,” which meant that sectoral idiosyncratic shocks may lead to aggregate fluctuations.
The authors considered the Brazilian input–output tables for the years 2010 and 2015 and found a significant asymmetry in the roles that sectors play as input suppliers to others.
Generalized Pareto exponents decreased from one period to the other, which suggested that the input–output network has become more vulnerable to shocks.
The authors identified real estate as the most important sector and, given its high connectivity, shocks to it could become a major driver of the Brazilian business cycle.
This is the first paper examining the asymmetric structure of the Brazilian input–output table, and results are compared with those for the US table.
Funding: Financial support from CNPq, Capes and FAP-DF is acknowledged.
Gonçalves, J., Matsushita, R. and Da Silva, S. (2021), "The asymmetric Brazilian input–output network", Journal of Economic Studies, Vol. 48 No. 3, pp. 604-615. https://doi.org/10.1108/JES-05-2020-0225
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