Economy FAQ (v5)

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Economy FAQ

The EU2 financial system

Information initially compiled by VKV.
Additions and corrections starting at version 5 also from Inigo Montoya

You can also download a printer-friendly RTF copy of this FAQ by chema-cagi here (also see his EU site, which also has a very nice EU2 1419 worldmap).

Version 5: Several corrections and updates for the economics sections in v1.01 in parts 1,2 & 3. Added part 7 about trade and infrastructure efficiencies
Version 4: Added a note about neighbour bonus in monthly investement (part 6)
Version 3: Added stability costs (part 5) and monthly investments (part 6). Completed financial summary (part 3) and tech costs with date modifier for land and naval techs (part 4).
Version 2: Added vassal revenue and complete tech cost study. Included bug links in text.

Table of Content
0- Definitions
1- Yearly Province Revenue
2- Country revenue
3- Display bugs
4- Tech costs
5- Stability costs
6- Monthly investments
7- Trade and Infrastructure Efficiencies

 

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0- Definitions

Province Modifier:
Modifier in % computed for each province. Based on the addition of the following factors:
- Province Culture not Country culture: -30%
- Province Religion not Country Religion: -30%
- No land connection to Capital (through owned provinces): - 10%
- Country Stability = 2: +10%, Stability = 3: +25%
- War taxes : + 150%
- State Religion of Hinduism: +5%
- State Religion of Protestantism: +10%
- State Religion of Buddhism: -20%
- State Religion of Counter Reformed: -20%
- State Religion of Confucianism: -30%
- State Religion of Shia Moslem: -20%
- State Religion of Reformist: -20%

Multiplier Type 1 (for production and generated trade):
TPs : Multiplier equal to (TP Level + 4)/10 : Level 1: x5/10, Level 2: x6/10, etc.)
Colonies: Multiplier based on population:
- 000-199: x1/6
- 200-299: x2/6
- 300-399: x3/6
- ...
- 600-699: x6/6
Towns: Multiplier based on population:
- 700-5000: x6/6
- 5001-10000: x7/6
- 10001-20000: x8/6
- 20001-40000: x9/6
- 40001-80000: x10/6
- 80001-200000: x11/6
- 200001-...: x12/6

Multiplier Type 2 (for Trade Tax, see 1.3) :
TP's: Multiplier equal to TP Level (Level 1: x1, Level 2: x2, etc.)
Colonies: Multiplier based on population:
- 000-199: x1
- 200-299: x2
- 300-399: x3
- ...
- 600-699: x6
Towns: Multiplier based on population:
- 700-5000: x6
- 5001-10000: x7
- 10001-20000: x8
- 20001-40000: x9
- 40001-80000: x10
- 80001-200000: x11
- 200001-...: x12

 

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1- Yearly Province Revenue

1.1- Taxes:
- Nothing for TP's and colonies
- For cities: (Base province value + Taxation Public Officials) * Province Modifier
- Taxation Public Officials: Tax Collector +1, Chief Judge +1

1.2- Production:
- Nothing for TP's
- (Multiplier type 1 based on province type and population) * (Basic Resource Price) * (Infrastructure Efficiency % + 1 [this +1 is a correction for a display bug, which may be fixed at a later date]) + Production Public Officials
- Production Public Officials: Tax Collector +1, Governor +1

1.3- Trade Tax:
- (Multiplier type 2 based on province type and population) * (Trade Efficiency % + 1 [this +1 is a correction for a display bug, which may be fixed at a later date])
- No effect from structure or resource type.
- Note: Province modifier not applied.

1.4- Trade Tariffs (for CoT province only):
- 3 * (Number of merchants in CoT)
- Note: Province modifier not applied.

1.5- Manufactories:
- Fine Arts Academy +6 (unless in Capital +12)
- Goods Factory +6 (unless in Cloth, Cotton, Tobacco +12)
- Naval Equipment Factory +6 (unless in Fish, Naval Supplies +12)
- Refinery +6 (unless in Sugar, Wine +12)
- Weapons Factory +6 (unless in Copper, Iron +12)

1.6- Generated trade revenue (directed to CoT):
- (Multiplier type 1 based on province type and population) * (Market Price for Resource)

1.7- Gold Mines:
- (Multiplier type 1 based on province type and population) * (Gold Income for Province) + Production Public Officials
- Production Public Officials: Tax Collector +1, Governor +1
- Note: Gold Income for Province can be referenced at http://www.europa-universalis.com/forum/showthread.php?s=&threadid=22080

 

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2- Country Revenue

2.1- Census Taxes (yearly):
- Sum of all province Tax (see 1.1)
- Does not appear in income summary as it is directly added to treasury on 1st of January.
- Tip: If you are at war and your stability increase cost is very low (like around 100 ducas/level), think about War Taxes : a +150% increase on province tax, that also applies to census taxes, i.e. your cash income on 1rst of January!

2.2- Gold (monthly):
- Sum of all province gold production (see 1.7) / 12
- Appears in income summary under "Gold mines"

2.3- Production (monthly):
- Sum of all province Production (see 1.2) / 12
- Appears in income summary as "Production"

2.4- Taxation (monthly):
- Sum of all province Tax (see 1.1) / 12
- Can include looting: when an enemy province is looted, the looter has a one-time gain of the looted provinces' base tax value.
- If you are the vassal of another nation, this sum is divided by two (half of this revenue goes to your suzerain, see 2.8).
- Appears in income summary in "Tax"

2.5- Tolls (monthly):
- Sum of all province Trade Tax (see 1.3) / 12
- Appears in income summary in "Tax"

2.6- Trade (monthly):
- Sum of all trade revenues from your merchants in CoT's / 12
- Appears in income summary in "Trade"

2.7- Trade Tariffs (monthly):
- Sum of all trade tariffs gained from your CoT's / 12
- Appears in income summary in "Tax".

2.8- Vassals (monthly)
- Sum of all the income you get from vassals. Each vassal gives you half of its monthly Taxation revenue (and not half of its total revenue!).
- Appears in income summary in "Tax"

2.9- Loan Interests (monthly)
- If you have lend money to other countries, the monthly revenu (yearly cost / 12) is put directly into your treasury each month. So it can't be invested in research but this cash generates no inflation. See the Loans Summary page in the ledger to know the yearly cost of a loan.

 

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3- Display Bugs
3.1- The Income Summary Screen
On top of this screen is the revenue part that looks like:
Tax 8 (125%) 10.0
Production 6 (33%) 2.0
Trade 8 (50%) 4.0

I found out that the numbers on the left are usually meaningless and that they are computed from the numbers on the right. This is mainly true for the taxation number. As not all parts of this number are subject to the stability modifier (125% here), I think the number on the right is computed as the sum of the monthly taxation, tolls and trade tariffs, and then the number on the left is computed by dividing by 125%

Also, the numbers displayed in February (i.e. numbers that could be applied in January) are wrong, and so is the expected inflation in the budget window in January. The numbers displayed in the ledger seem to be right every time I double-checked them.

3.2- The Resource Information Screen
Under Production, there is a section that looks like:
Our Production: 150 units
Infrastructure: 21%
Our Production Income: 2.0
The last number is erroneous. The value is derived from the Infrastructure percent times the Basic Resource Price instead of Basic Price for Resource * Population Production Modifier * Infrastructure Modifier + Production Public Officials.

3.3- Refinery Manufactory Income Popup
When clicking on the foundation to build a new manufactory, holding the mouse over the Refinery option causes a popup window to appear. In this popup window, after "sugar or wine:" it reads 12. This is incomplete. It should read "12 [ducats symbol] (otherwise 6[ducats symbol])."

 

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4- Tech costs
Note: This does not apply to stability cost.

What influences tech advancement costs:
- Has Influence: # of cities (> 700 inhabitants), DP settings, inflation, state religion, tech group , researched tech level, capital location
- Has no influence: To have vassals or not, Cities' population count, provinces' locations, Provinces' value (base tax or revenue), Number of TP & Colonies (whatever level), the date, the number of state cultures
- To be studied: Provinces religion

Actual value = (Base Value BV that depends on the researched technology)
* (1 + M * (cities count modifier) - M * (techspeed of state religion)/10 + (No contact modifier) )
* (date modifier)
* (tech group multiplier)
* (DP multiplier, from -35% to +35%, i.e. x0.65 to x1.35)
* (Inflation level, from x1.00 for 0% inflation to ...)

The Base Value depends on the researched technology's type (land, naval, etc.) and level and is expressed for neutral conditions: European one-province country, Catholic religion, Latin tech group, neutral DP, no inflation.
Note: The basic cost is proportional to the difference between d(N) and d(N-1) [see date modifier below], with a factor that varies from 500 in 1494 to 800 in 1800. For instance, cost of researching land tech level 2 (current level 1) is around [d(1) - d(0)]*500 = [1429-1419]*500 = 5000, whereas researching level 3 is [d(2)-d(1)]*500 = [1450-1429]*500 = 10000.

M the Magic number is a percentage around 1/24 of the base value BV

Date Modifier
Applies only to land and naval tech research
Basic principle is that to research a military technology in advance of its average discovery date costs a lot more.
The complete information can be found in the db\land.csv and db\naval.csv files. Each tech level N has an "average date for next" value, that we call d(N) here.
If the current year is equal or greater than [d(N-1) - 5], then the modifier is x1, i.e. there is no extra cost.
If the current year is lower than [d(N-1) - 5], then the modifier is x(2.5 + 0.25*(d(N-1) - 6 - current)].

Extract from land.csv:
Current                 Year  Year
Lvl = n   D(n-1) D(n)   x2.5  x1	
0         -      1419   -     -	
1         1419   1429   -     -	
2         1429   1450   1423  1424	
3         1450   1465   1444  1445

Example :
Current land level : 2 (researching level 3)
If the current year is 1424 or more, the date modifier is x1.
If the current year is 1423, the date modifier is x2.5
If the current year is 1422, the date modifier is x(2.5 + 0.25) = x2.75

Cities Modifier: (Only cities > 700 inhabitants are counted, updated at end of month)
# of cities: Cities Count Modifier
1 city: x0
2 cities: x1
3 cities: x2
4 cities: x2.5
5 cities: x3
6 cities: x4
7 cities: x4.5
8 cities and more: x5

Religion techspeed:
Note: Religion modifiers not applied until related events happen for protestant, reformed and counter-reformed religions (to be confirmed)
Religion: Techspeed
Protestantism: +4
Reformed: +3
Catholicism: 0
Counterreformed: -3
Orthodox: -1
Sunni islam: -1
Shiite islam: -3
Buddhism: -5
Hinduism: -10
Confucianism: -10
Paganism: -25

No contact with Europe modifier (to be confirmed):
Applies when capital province is in America (at least). Decrease with contacts, wars, etc. with european nations.
Maximum modifier = 625/300, minimum modifier = 0

Tech group multiplier:
Latin: x1.0
Orthodox: x1.2
Muslim: x1.4
China: x1.7
Exotic: x1.9

DP settings multiplier:
Sum of the modifiers of the two policies affect the technology costs:
- Centralization / Decentralization: from -10% to +10%
- Narrowminded / Innovativeness: from +25% to -25%

 

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5- Stability costs

Stability cost = [Base cost = sum of province stability costs]
* (DP multiplier, from -75% to +75%, i.e. x0.25 to x1.75)
* (Inflation level, from x1.00 for 0% inflation to ...)

The stability base cost is given by thhe sum of the stability cost for each province.
The province stability cost depends on the State Religion and on the Province Religion.

State Rel.     Province Rel.   Cost
Christian      Same Christian   20
Christian      Other Christian  50
Christian      Non Christian   100

Non Christian  Same religion    20
Non Christian  Others           60

The Domestic Policy multiplier
Sum of the modifiers of the two policies affect the stability cost:
- Narrowminded / Innovativeness: from -25% to +25%
- Free Subjects / Serfdom: from +50% to -50%

 

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6- Monthly Investments

Note: The Neighbour Bonus is given to countries that are behind in the technology race. It depends on the tech levels of the countries in the same tech group and not on the tech levels of your geographical neighbours.

6.1- Land tech
Invested each month: budget + (Monarch Military skill) + (5 ducas per Weapon Manufactory) + (Neighbour bonus)

6.2- Naval tech
Invested each month: budget + (Monarch Military skill) + (5 ducas per Naval Equipment Manufactory) + (Neighbour bonus)

6.3- Stability
Invested each month:
part of your monthly income (see budget frame to set percentage)
+ (your monarch ADM skill * 2)
+ (5 ducas per Fine Art Academies)
+ (Religion bonus)

Where the Religion Bonus is:
Protestantism -3
Reformed -3
Counterreformed +10
Catholicism +6
Orthodox +8
Sunni islam +2
Shiite islam +1
Paganism -5
Confucianism +5
Buddhism +5
Hinduism -3

6.4- Trade
Invested each month: budget + (Monarch Administrative skill) + (5 ducas per Refinery) + (Neighbour bonus)

6.5- Infrastructure
Invested each month: budget + (Monarch Administrative skill) + (5 ducas per Goods Manufactory) + (Neighbour bonus)

 

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7- Trade and Infrastructure Efficiencies
Free ad: This part is brought to you by Inigo Montoya

7.1- Infrastructure Efficiency
Note: In the Financial Summary, locate value in parentheses on the Goods Production line, and add one to correct for a display BUG (v1.01).

Base level depends on the Infrastructure Technology Level:

Level Efficiency  Effect
 0        20%     Allows Colonists
 1        25%     Allows Tax Collectors
 2        30%     Allows Fine Arts Academies
 3        35%     Allows Refineries
 4        40%     Allows Chief Judges
 5        50%     Allows Governors
 6        60%     Allows Goods Manufactories
 7        70%
 8        80%
 9        90%
10       100%

Then the following modifiers apply:
- Plutocracy/Aristocracy DP setting: +5% to -5%
- Decentralization/Centralization DP setting: -10% to +10%
- Free Subjects/Serfdom DP setting: +10% to -10%
- State Religion of Protestantism: +10%
- State Religion of Catholicism: +5%
- State Religion of Paganism: +5%
- State Religion of Confucianism: +5%
- State Religion of Hinduism: +5%
- Goods Manufactories: +1% for each one

7.2- Trade Level Modifier
Note: In the Financial Summary, locate the value in parentheses on the Trading Income line, and add one to correct for a display BUG (v1.01).
Base level depends on the Trade Technology Level:

Level Efficiency  Effect
 0       20%      Allows Merchants
 1       60%      Allows Trading Posts
 2       65%      Allows Monopolies
 3       70%      Allows Trade Embargos
 4       75%      Allows Chief Judges
 5       80%
 6       85%
 7       90%
 8       95%
 9      100%
10      100%

Then the following modifiers apply:
- Plutocracy/Aristocracy DP setting: +10% to –10%
- Naval/Land DP setting: +10% to -10%
- State Religion of Reformist: +20%
- State Religion of Confucianism: -5%
- Refineries: +1% for each one

 

[State Machine]

Updated with 1.05 changes to religion and DP modifiers.

 

[State Machine]

ws2_32 has some interesting observations. See this thread for details on nations that have little contact with other nations.

 

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updated efficiencies

OK, so I checked all different combinations I could think of and it seems that the trade and production efficiency looks as follows (this is for 1.07 July beta):

Trade efficiency
At DP sliders all set to 5:
Level 0 - 20%
Level 1 - 30%
Level 2 - 40%
Level 3 - 50%
Level 4 - 55%
Level 5 - 60%
Level 6 - 65%
Level 7 - 70%
Level 8 - 80%
Level 9 - 90%
Level 10 - 100%

DP settings that influence trade efficiency are
aristocracy (-1 for each aristocracy)
land (-1 for each land)

Religions that influence trade efficiency:
reformed +10
counterreform -10

You can get 1 extra point for each refinery you have.

Each trade agreement decreases trade efficiency by 1 point.

Contrary to what is stated in DP slider information, trade embargoes do not seem to have any effect on trade efficiency (I had Spain with full free trade (=0 free refusals) embargoing 11 countries and it didn't matter for their trade efficiency at all)

You can't have trade efficiency lower than zero.

Production efficiency
At DP sliders all set to 5:
Level 0 - 15%
Level 1 - 20%
Level 2 - 30%
Level 3 - 35%
Level 4 - 40%
Level 5 - 50%
Level 6 - 60%
Level 7 - 70%
Level 8 - 80%
Level 9 - 90%
Level 10 - 100%

DP settigs that influence production efficiency are:
aristocracy (-1 for each aristocracy)
centralization (+2 for each centralization)
land (+1 for each land)
serfdom (-2 for each serfdom)

Protestant countries get extra 10 points.

Each goods manufactory adds 1 point to production efficiency.

You can't have production efficiency lower than zero.


A question to the moderators: is there some way to add this post to the FAQ Economy sticky? The information on efficiencies that's out there is grossly outdated.

It might be possible, yes...-kurtbrian

 

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Stability costs as of Feb 7th beta:

Stability cost = Base cost
* (DP multiplier)
* (Inflation level, from x1.00 for 0% inflation to ...)
* (BB modifier)
* (Fine Arts Academy reduction, MAX[(1 - (# of FAA)/100)),0.5]

The base cost is given by the sum of the stability cost for each province. The stability cost of one province is the sum of the "state religion vs province religion" cost and the state religion bonus/malus

State religion vs province religion

State Rel.     Province Rel.   Cost
Christian      Same Christian   25
Christian      Other Christian  50
Christian      Non Christian   100

Non Christian  Same religion    25
Non Christian  Others           60

State religion bonus/malus

Protestant	  3
Reformed	  3
CRC		 -6
Catholic	 -6
Orthodox	 -8
Sunni		 -6
Shiite		 -6
Paganism	  5
Confucianism	-10
Buddhism	 -5
Hinduism	  3

The Domestic Policy multiplier
Sum of the modifiers of the two policies affect the stability cost:
- Narrowminded / Innovativeness: from -25% to +25%
- Free Subjects / Serfdom: from +25% to -25%

BB modifier

• BB < 0.5 * BBmax: BB modifier = (1 + BB / 100)
• 0.5 * BBmax < BB < BBmax: BB modifier = min[(1 + (2 * BB) / 100),2]
• BB > BBmax: BB modifier = 2