Update input cost matrix for Chowdhry, Hinz, Kamin & Wanner (2022)

Source: R/model_chowdhry_hinz_kamin_wanner_2022.R

Updates cost of input bundle following Chowdhry, Hinz, Kamin & Wanner (2022) equations (10).

update_input_cost_chkw_2022(
  input_cost_change,
  wage_change,
  price_change,
  factor_share,
  intermediate_share,
  model_dimensions
)

Arguments

input_cost_change

Matrix of input cost changes, dimensions: sector x country.

wage_change

Vector of change in wages, dimension: country.

price_change

Matrix of price index changes, dimensions: sector x country.

factor_share

Matrix of input factor shares, dimensions: sector x country.

intermediate_share

Array of input-output coefficients, dimensions: input_sector x output_sector x country.

model_dimensions

List of model dimensions.

Value

Matrix of changes in input costs, dimensions: sector x country.