IS curve and sectoral production: an analysis from the input-output table

Authors

  • Fábio Gama Universidade Federal do Delta do Parnaíba
  • Suzana Bastos
  • Eudésio Silva
  • Mateus Souza

Keywords:

IS curve, input-output, sectorial output, Brazil

Abstract

This article investigated the relationship between sectoral production and the New Keynesian IS curve for 35 sectors of the Brazilian economy in the period from 2001 to 2011. To do so, we started with the estimated IS curve, integrating it with an input-output matrix and, then, the sensitivity of the producing sectors to variations in their determinants was verified. The hybrid input-output\Econometrics model made it possible to identify which sectors are most sensitive to three scenarios: shocks in interest rates, product expectations and inflation. In general, the most affected sectors were vehicle maintenance, fuel sales, food, drink and tobacco, public administration and construction.

Published

2023-12-30

Issue

Section

Science article