Update trade balance according to different adjustment rules

Source: R/model_commons.R

Updates the trade balance based on different rules: (1) "fixed" - Unchanged trade balance, (2) "fixed_country_share" - Constant relative to country's value added, (3) "fixed_global_share" - Constant share in global value added, (4) "zero" - Set all trade balances to zero.

The solved trade balances must sum to zero for the world. Under `"fixed_country_share"` they do so only if value added changes by the same factor in every country, which in practice means no shock. Under `"fixed"` and `"fixed_global_share"` they do so only if the baseline trade balances sum to zero. [update_equilibrium()] reports `convergence = FALSE` with a warning of class `kite_world_trade_balance` for runs where the rule cannot hold for the world.

update_trade_balance(
  trade_balance,
  value_added,
  value_added_new,
  trade_balance_rule = "fixed"
)

Arguments

trade_balance

Vector of initial trade balances, dimension: country.

value_added

Vector of initial value added, dimension: country.

value_added_new

Vector of new value added, dimension: country.

trade_balance_rule

Character string specifying adjustment rule: `"fixed"`, `"fixed_country_share"`, `"fixed_global_share"`, or `"zero"`.

Value

Vector of updated trade balance values, dimension: country.