Update output and income for Mahlkow and Wanner (2021) — update_output_income_mw

Updates output and income as [update_output_income_cp_2015()], with tax-inclusive expenditure: suppliers receive expenditure net of the tax wedge, and the tax revenue is part of income.

update_output_income_mw_2021(
  output_new,
  income_new,
  consumption_share,
  input_share,
  trade_share_new,
  tariff_new,
  export_subsidy_new,
  tax_new,
  value_added,
  wage_change,
  population_change,
  trade_balance_new,
  model_dimensions,
  tolerance,
  convergence_method,
  verbose,
  max_inner_iterations = 5000L
)

Arguments

output_new: Matrix of new outputs, dimensions: country x sector.
income_new: Vector of new incomes, dimension: country.
consumption_share: Matrix of consumption shares, dimensions: country x sector.
input_share: Array of beta-multiplied input-output coefficients, dimensions: country x input x output.
trade_share_new: Array of new trade shares, dimensions: origin x destination x sector.
tariff_new: Array of new tariffs, dimensions: origin x destination x sector.
export_subsidy_new: Array of export subsidies, dimensions: origin x destination x sector.
tax_new: Matrix of new tax wedges, dimensions: country x sector.
value_added: Vector of value added, dimension: country.
wage_change: Vector of change in wages, dimension: country.
population_change: Vector of change in population, dimension: country.
trade_balance_new: Vector of new aggregate trade balance, dimension: country.
model_dimensions: List of model dimensions.
tolerance: Tolerance for inner convergence.
convergence_method: Method for convergence checking.
verbose: Verbosity level.
max_inner_iterations: Maximum number of inner iterations before the loop bails out (default 5000).

Value

List with `income_new`, `output_new`, `expenditure_new`, `n_iterations_output_update` and `inner_converged`.