The asymmetric Brazilian input–output network

Purpose: 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. Design/methodology/approach: 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. Findings: Generalized Pareto exponents decreased from one period to the other, which suggested that the input–output network has become more vulnerable to shocks. Practical implications: 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. Originality/value: 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.