  We model sectoral production by serially nesting (cascading) binary
compounding processes. The sequence of processes is discovered in a
self-similar hierarchical structure stylized in macroscopic input-output
transactions. The feedback system of unit cost functions, with recursively
estimated nest-wise CES parameters, is calibrated for sectoral productivities
to replicate two temporally distant cost share structures, observed in a set of
linked input--output tables. We model representative households by multifactor
CES, with parameters estimated by fixed effects regressions. By the integrated
dynamic general equilibrium model, we extrapolate potential structural
transformations, and measure the associated welfare changes, caused by
exogenous sectoral productivity shocks.
