Economic Model for EUIV

[Hagen II]

No doubt that most gamers and analysts would agree that the research carried out by Paradox is virtually unequalled. Nonetheless, it would be of interest (to me only, perhaps) whether taxation has been correctly modelled. It is generally accepted by most economists, even Krugman and other "liberal/socialist" icons, that excessive taxation slows growth.
In EUIV, every time I build an improvement which increases tax, I get more money.
Does this reflect;
a) Improved collection, less evasion
b) Higher tax rate, greedier ruler.
c) Mistaken model
d) Complicated algorithm, Hagen's gone mad

If anyone can show me a correlation between increased production and taxes, or vice versa, it would help.

 

[Grand Historian]

Most likely A. I don't think there is a way to directly affect a tax percentage in EU4, just how effectively it ends up in your coffers instead of elsewhere.

 

[zamieo]

Well, looking at the buildings that increase tax, you have:
1. Temple, which gives you +1 base tax. I assume that the temple somehow has an income and provides a part of that income to the government. So, I guess A & B.
2. Courthouse, which gives you +10% local tax modifier. Here we can assume that people who evade taxes are taken to the courthouse and trialled and are made to pay their taxes. People are more scared of evading taxes so they now pay more taxes. A.
3. Spy Agency, which gives you a +20% local tax modifier. I don't know what exactly a spy agency does, but in this case, I assume they find out who are evading taxes and getting them collected. A.
4. Town hall. +25% local tax modifier. Improved administration and bureaucracy. A.
5. College. +50% local tax modifier. I'm not sure here, but it could either be revenue from the college itself or that a center of learning stimulates growth. A & B?
6. Cathedral. +3 tax income. Similar to a temple. Most likely A & B (not a higher tax rate, but they create a new income source).

 

[thefourthestate]

Define 'excessive'.

Not all spending is created equal. State investments in infrastructure and soldiers' wages boost economies more than yacht sales.

 

[gall]

Well, you want us to show you connection between ordinal taxes (tax income) and taxes regarding crafting and local trade (production income in game terminology) or perhaps you were thinking about goods produced and taxes? Base tax is measure of wealth of province. It is odd that tax/production efficiency didn't affect goods produced in any direct way, but this is from very same (game design) reason why ideas never give negative modifiers directly. South Italy was good example how high taxes influence local economy.
Infrastructure, order (lack of bandits, some stability regarding regulations, supply with water, food, raw materials etc.), equal laws for wealth part of population (to maintain competition between them), proper administration - all this things improve both tax collection and economical potential of city/province.

 

[Hagen II]

Define 'excessive'.

Not all spending is created equal. State investments in infrastructure and soldiers' wages boost economies more than yacht sales.

That's my feeling too, nowadays. Was this true in EUIV's period, during the transition from feudal to modern economies? Nonetheless, overall the response is (a), and the game is not broken, so I'll assume Paradox put some thought into it.

 

[jacobsighs]

Well, looking at the buildings that increase tax, you have:
1. Temple, which gives you +1 base tax. I assume that the temple somehow has an income and provides a part of that income to the government. So, I guess A & B.
2. Courthouse, which gives you +10% local tax modifier. Here we can assume that people who evade taxes are taken to the courthouse and trialled and are made to pay their taxes. People are more scared of evading taxes so they now pay more taxes. A.
3. Spy Agency, which gives you a +20% local tax modifier. I don't know what exactly a spy agency does, but in this case, I assume they find out who are evading taxes and getting them collected. A.
4. Town hall. +25% local tax modifier. Improved administration and bureaucracy. A.
5. College. +50% local tax modifier. I'm not sure here, but it could either be revenue from the college itself or that a center of learning stimulates growth. A & B?
6. Cathedral. +3 tax income. Similar to a temple. Most likely A & B (not a higher tax rate, but they create a new income source).

I think of the Temple and Cathedral buildings as attracting larger populations. Many early communities are established around places of worship, so it could be like a catalyst for population growth.

 

[hughbadou]

Really hope some form of real world economics are implemented in the next game...

 

[The_Meme_Man]

That was...quite the necro

 

[gigau]

Reminder : as a general rule, note that a thread without posts for several months, especially if dates back from before the previous DLC/patch release, should be left dormant.

Instead of necro'ing, create a new thread, possibly linking this thread for reference.