Update input cost matrix for Caliendo and Parro (2015) — update_input_cost_cp

Updates cost of input bundle following Caliendo & Parro (2015) equations (10).

update_input_cost_cp_2015(
  input_cost_change,
  wage_change,
  productivity_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.
productivity_change: Vector of change in productivity, dimension: country x sector.
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.