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GTAP Resource #7835

"Structural Tightness in Benchmark Input-Output Data: A Minimum-Deformation Approach "
Authors: Yuan, Mei and Mustafa Babiker


Abstract
We study a structural layer of benchmark input-output data that is present before prices, substitution, and equilibrium adjustment are introduced. Using the benchmark intermediate-use matrix from the official U.S. Bureau of Economic Analysis supply-use tables, we examine how much the benchmark flow structure must be reorganized when one row or column total is perturbed and the new accounting constraints must still be satisfied while remaining as close as possible to the original matrix. We implement this diagnostic with the iterative proportional fitting procedure and measure the required deformation with Kullback-Leibler divergence. Across benchmark years, the sectoral ranking implied by these deformation measures is relatively stable, with limited reshuffling within the leading group under both the 15-sector and 73-sector classifications. Sectoral disaggregation then sharpens that ranking by identifying more precisely which industries occupy the top of the distribution, first under the 73-sector classification and then under a more detailed classification. Finally, using equal-step shocks under the 15-sector classification, we find that raw KL deformation rises more than proportionally with shock size, indicating that larger shocks require disproportionately more reorganization of the benchmark intermediate-use structure. These results suggest that benchmark input-output data already contain a persistent and nonlinear structural layer before behavioral assumptions are imposed. This layer helps identify where structural tightness is concentrated, how it changes with sectoral detail, and how it intensifies as shocks grow.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Published
By/In: Presented during the 29th Annual Conference on Global Economic Analysis (Kyoto, Japan)
Date: 2026
Version:
Created: Yuan, M. (4/14/2026)
Updated: Yuan, M. (4/14/2026)
Visits: 5
- Other data bases and data issues
- Advances in quantitative methods
- Calibration and parameter estimation
- Partial and general equilibrium models
- North America


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