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An index of static resilience in interindustry economics


  • Ferran Sancho
  • Ana-Isabel Guerra
  • Betty Agnani


We introduce a novel static indicator of economy-wide resilience that captures the ability of an economy to adjust and recover from a negative shock from either the demand or the supply side. The metric is counterfactual and reveals by simulation the extent of the adjustments that would keep total income at least at the initial pre-shock level while maintaining the initial economic structure. The larger the scale of the needed adjustments in response to the shock, the smaller is the resilience of the economic system. The methodology we propose for this evaluation uses the concept of constrained input-output multipliers which in turn are incorporated within a linear programming problem. We show the applicability of this approach by calculating and comparing demand and supply resilience indices for a group of ten large OECD economies. For all these economies, the results show that manufacturing industries are more resilient than services sectors and that economic resilience regarding negative supply shocks is higher than demand shocks.

Suggested Citation

  • Ferran Sancho & Ana-Isabel Guerra & Betty Agnani, 2023. "An index of static resilience in interindustry economics," UFAE and IAE Working Papers 972.23, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  • Handle: RePEc:aub:autbar:972.23

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    References listed on IDEAS

    1. Elena SERFILIPPI & Gayatri RAMNATH, 2018. "Resilience Measurement And Conceptual Frameworks: A Review Of The Literature," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 645-664, December.
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    6. Tugrul Temel & Paul Phumpiu, 2021. "Pathways to recovery from COVID-19: characterizing input–output linkages of a targeted sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-24, December.
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    8. Anton Pichler & J. Doyne Farmer, 2022. "Simultaneous supply and demand constraints in input–output networks: the case of Covid-19 in Germany, Italy, and Spain," Economic Systems Research, Taylor & Francis Journals, vol. 34(3), pages 273-293, July.
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    More about this item


    demand resilience; supply resilience; static economic resilience; constrained input- output multipliers; endogenous scaling.;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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