Sectoral production is modeled by cascading binary compounding processes. The sequence of processes is discovered in a self-similar hierarchical structure stylized in the economy-wide networks of production. All nesting substitution elasticities and Hicks neutral productivity growths are measured in order that the general equilibrium feedbacks between all sectoral unit cost functions reenact the transformation of networks observed as a set of two temporally distant input-output coefficient matrices. This system of unit cost functions is examined as to how idiosyncratic sectoral productivity shocks propagate into aggregate macroeconomic fluctuations in light of potential networks transformation. Also, we study how sectoral productivity increments propagate into dynamical general equilibrium allowing networks transformation and ultimately gain social benefits.
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