NS Economy Economic Indicator, GDP, Trade, and Output CalculationsThe NS Economy calculator relies on a complex series of equations to generate your economic conditions. The calculations are made from the formulas and equations below.
Economic Calculator Basic Values | Equations to Compute Economy | Black Market Definitions
Base values are conversions of the Civil Rights, Economy, and Political Freedom ratings to numbers usable in the formula.
Worker Enthusiasm is 1 + Civil Rights modifier + Political Freedom modifier + Tax Rate modifier.
Administration Budget Curve
The Administration Budget Curve is calculated based on the Administration Budget (the percentage from the XML feed divided by 100). If the Administration Budget (hereafter x) is 0.3, then the Administration Budget Curve is 1, otherwise, it is 1 - x * sign(x - 0.3) * |x - 0.3|1/3 + 0.2x.
Output is Production * Population * Worker Enthusiasm * Consumer Confidence.
Consumption is Output * (1 - Tax Rate).
Goverment Budget is Output * Government Efficiency * (Tax Rate + Consumer Confidence / 10 + Worker Enthusiasm / 40).
Government Expenditures is Budget * Government Efficiency.
Government Waste is Government Budget - Government Expenditures.
Budget by category
The budget percentages in the XML feed are used to calculate the total budget for each of those categories. For example, the Defense Budget is Defense Budget Percent * Government Expenditures, where Defense Budget Percent is the percentage from the XML feed divided by 100.
Imports is ((1 / Consumer Confidence) / 8) * (Consumption + Government Expenditures).
Exports is Total Imports * (Output / Total Output), where Total Imports and Total Output are the sum of those values for every nation in the region.
Net Trade is Exports - Imports.
GDP is Consumption + Net Trade + Government Expenditures.
GDP Per Capita
GDP Per Capita is GDP / Population.
Exchange Rate is SQUARE ROOT OF (GDP Per Capita * Production / 404,000,000).
Unemployment is (GDP Per Capita - 37,500)2 * 1.25 * 10-10 - 1.5 * 10-6 * |GDP Per Capita - 37,500| + 0.03.
When things are good, the black market consists of government waste, almost exclusively. When things aren't so good, the black market explodes.
Commercial Black Markets are a product of Government Efficiency (regulations) Worker Enthusiasm (are they stealing the paper towels) and Consumer Confidence (does the society think this is going to work).
BMConfidence = GE + WE + CC /3
If that number is less than 1, folks are stealing; but it's hard to get more than half, even in a perfect criminal world. But underground businesses, illegal activities, stuff off the books, trade, etc. flourish... The size of your other systems determines what infrastructure is there to be used.
Consumer Fraud, Theft, and Blackmarkets Grow by 1/BMConfidence * 0.5 * Economic Output
If that number is more than one, ethics are abundant in your country, which helps the government keep rigid controls and tax everything perfectly; 3/4 of that translates to societal ethics, multiplied by government waste. However, being shut out of criminal enterprises, these countries may or may not make more than those that do.
Consumer Fraud, Theft, and Blackmarkets Shrink by 1/BMConfidence * .75 * Government Waste
Tax Evasion: In any country collecting taxes, the tax rate effects tax evasion. When things are bad, it is assumed, when things are good, only a percentage of a 1/3 of enterprises even thinks about it. Government law and order then helps to crack down. Add illegal businesses, trades, and other black market activity acceleration to the economy and it is really capable of running at 3x, but not motivated to do so.
Subract Ethics: -1 / BMConfidence * 75% * The Government Efficiency Multiplier
Then you add in the white collar crime:
Tax Evasion and Illegal Businesses: Economic Output * 3 * Tax Rate * 1 / Government Efficiency
Finally you add Government Waste to the Private Sector Fraud or Theft, to See the full Extent of the Black Market.
Per Sunset: "Yes, a black market can spring up over night. You should legislate carefully.
The black market category calculations are his secret sauce as a courtesy.