As the second edition of the Unified Economic Theory, this new model draws upon some ideas from the first UET, yet incorporates a number of new concepts and features that will allow for even greater conceptual coherence and gameplay feasibility. Thanks to all who posted and commented in the old UET thread. Your comments and suggestions were valuable and contributed to this new edition. I will be developing the UET II with periodic modifications and new sections, so please check back occasionally! And, as always, all comments are welcome and encouraged! Unified Economic Theory, Second Edition (UET II) I. Commodity Production A. Resource Production The base of the economy is the working of regular terrain tiles, which yields food and shields. Each citizen working a tile will consume 1 food for sustenance, and then send any surplus resources to the city center for consumption or export. B. Luxury Resources Some tiles may contain luxury resources, which, when obtained, will increase the happiness of those citizens that consume it. Each source yields a finite amount when worked, and these goods are then sent to the city center. At the city center, the luxuries may be exported to boost the city’s income, or consumed through certain structures. For example, Incense can boost happiness through its use at a local Temple. If the luxury is not used through a certain structure, then it is distributed to the local populace through a Marketplace. C. Strategic Resources Another type of resource that may be extracted from certain tiles is strategic resources, which are required in the production of certain units and structures. Each source yields a finite amount of the resource, which is sent to the city center for distribution or export. Special structures (“Workshops” are prerequisites for certain units and improvements; these special structures will demand strategic resources and require them to be functional. D. Food Diversity There is no standard food; instead, there are variations produced by working particular terrain types. For example, Grassland tiles will produce food as Wheat; Ocean tiles, however, will produce Fish as food. Since both are food, both can be consumed to sustain citizens and promote growth. A city with a greater variety of food, however, will be happier than one with less variety. In addition, certain manufactured food products require certain types of food. Food prices will depend upon supply and demand situations for each type of food. E. Shield Diversity There is also no standard shield. Although all types of shields may be used for the production of units and structures, Workshops may become more efficient at using certain types of shields. These abilities are acquired through sustained usage of a certain type of resource or through upgrades. When a Workshop uses a shield “efficiently,” it counts as double in the accumulation of shields to produce units or structures. Workshops will particularly demand shield types that they specialize in. The price of each type of shield depends upon supply and demand situations for that type of shield. II. Trade and Markets A. Trade When surplus resources are sent to the city center, they are either consumed by the local population or exported for income. Generally, the local population will consume as much as it can of the resources it has produced, then export any surplus to nearby accessible cities that have unfulfilled demand. When other cities purchase this surplus, the city that sold the products earns income. B. Markets and Transportation When two cities are close enough to trade (this limit can be alleviated through rivers, roads, railroads, etc.), they are considered a market. The supply and demand situations in each market determine the price of the commodities for sale there. While early markets will only include a few cities, later markets can cover entire provinces and even entire civilizations. It is generally advantageous to develop larger markets, since the variety and supply of buyers and sellers increase. Since transportation determines the sizes of markets, building and improving the arteries of travel in a civ through construction and research can be very beneficial. III. Finance A. Taxation As trade occurs between cities, local populations generate and accumulate wealth. This wealth may be taxed by the central government through a number of taxes of various rates. While the income tax is the standard tax, there are also population, commodity, and trade taxes to provide additional revenue. Since actual sources of income are targeted in such taxes, robust trade is generally necessary for healthy tax revenues. Heavy taxation will reduce the ability of cities to make purchases, thus damaging the economy, and light taxation will reduce the ability of the central government to make purchases, possibly threatening the maintenance of infrastructure and troops. A balance, adjusting to changing circumstances, would work best. B. Tax Collection and Transportation Tax revenues take time to reach the capital city, and this time depends directly upon the transportation available. Although tax collectors will not be visible on the map, they will essentially be traveling from each city to the capital to deposit their revenues. This process is automatic, but will further encourage improvement of infrastructure, as well as discourage early overexpansion, before proper transportation technologies have been researched. C. Tax Collectors The central government may also convert citizens to Tax Collectors, which increase the speed at which tax revenues are collected and deposited at the capital city. An extra Tax Collector in addition to the local tax collectors will double tax travel time; two extra Tax Collectors will triple tax travel time, and so forth. D. Tax Collection and Provincial Capitals Establishing Provincial Capitals may ease tax collection because revenues may be deposited there instead, speeding the collection process. These funds are only usable within the province, however, as opposed to the central treasury that may be used anywhere in the civ. The only way to “transfer” these funds to the central treasury would be through a special provincial tax. Notice that the player fully controls the provincial treasuries as well as the central, so that may not be necessary. E. Negative City Accounts When a city owes tax revenue but has no funds to give, its balance will become negative to indicate that when funds do arrive, they are to be directed toward paying the taxes that the city still owes. With no tax revenues collected, tax collectors would not deposit anything in the provincial or central treasuries, in this situation. For example, a city owing 5 gold but without the funds to do so would have a balance of –5, and the tax collector would have nothing to deposit (since there was nothing to collect). There is no interest, no bonds have been issued—in other words, this “debt” is more of simply a “negative account”—and once the city receives funds, the tax collector will be sent out with the amount owed to restore the account to a positive state. IV. City Infrastructure A. Public City Improvements City Improvements may be constructed either by the central government or by the city itself. Should the construction be funded by the central government, the player may choose the rate at which it will be constructed, with a greater rate resulting in the project purchasing a greater number of shields per turn, and therefore costing more (but generally getting the project completed more quickly). Notice that a greater rate will not guarantee quicker construction, if all available shields have already been purchased. All public city improvements will draw their maintenance fees from the central treasury. The central government is free to sell or upgrade any such facilities, however. B. Private City Improvements Individual cities may choose to construct city improvements for themselves. In this case, the city will simply allocate any excess shields or excess funds it has to the project. The selected project will generally benefit commerce, education, or happiness, although the player may override and select a project for the city. Once completed, private improvements are maintained by the city, but may also be sold by the city in times of financial crisis, or upgraded when resources are available. C. Transferring City Improvements Control of city improvements may be transferred from the city to the central government or vice versa, according to the player’s directives. Although ownership primarily determines who is to pay the maintenance fee (improvements will benefit the city they are located in, regardless of ownership), it also determines who has the right to sell or upgrade improvements. V. Science A. Education and Scientific Progress The education level (or literacy rate) of the population will play a central role in scientific progress. For the sake of simplicity, the Civ method of having beakers accumulate to create a scientific advance will be used; the beakers will not be generated from trade, however, rather from the collective level of education in the civ, enhanced by facilities such as libraries, universities, and research labs. B. Trade and Scientific Progress Trading with another civ that knows of an advance being researched will contribute beakers toward the discovery of that particular advance. Trade with another civ that is more scientifically advanced in a category being researched would also contribute beakers toward the discovery of an advance in that particular category, although to a lesser degree than in the above situation with a specific advance. C. Research Facilities Although an uneducated citizen will still generate 1 beaker, a Library will increase the per person output of the city the Library is in by 1 beaker, and the other facilities will have the same effect on the beaker output per person. The maximum number of beakers a single citizen can contribute (under normal circumstances) is 4 beakers. Scientific wonders and special funding can change this number. D. Research Direction When harnessing the beakers of uneducated citizens, the research goal may only be set as a category, and a random available tech in that category will be researched. Beakers from a Library can be directed toward a specific goal, however, and a University can also receive research funding from the central government to speed scientific discovery. The most advanced facility, the Research Lab, allows Researcher specialists to be assigned to the facility to enhance the Research Lab’s effects. VI. Population Organization and Placement A. Basic Unit of Population – the Village The basic unit of population is one Settlement, which will be represented on the map as a cluster of houses taking up the space of one tile. These units are equivalent to the current citizen “heads” in Civ. However, each population point, initially, can only extract a total of three units of any resources from a tile. Each unit of population consumes one food for survival, and demands (although does not consume) one shield for purposes of calculating market demand. In addition, each Village has a “food box” of 5 food to fill before growing into two population units (spreading onto an adjacent square as another Village). B. Cities Although Villages may function separately, often they are absorbed into the cultural spheres of nearby City squares. A City square is any square that contains a City Improvement or Wonder. Primary differences between City and Village squares include the fact that City squares have City Improvements and therefore special advantages over less developed squares, and also that they generate their own culture (due to these improvements). A City is also on a higher level of organization than a Village, having its own administration, treasury, and cultural tag that affect units or products that originate from the City. C. Provinces Provinces are large tracts of land that are initially organized by the player, who selects the cities that are to belong in a Province. Provincial Capitals, however, function much like cities--they are the center of culture for that Province, and house the provincial administration and treasury. As a result, the designation of Provinces in the beginning is important, since later on any changes would be due mostly to cultural shifts, and while the player can manually change the provincial boundaries, culture would determine the ultimate result of such changes. D. National Capital The National Capital is generally the cultural center of a civ, and houses the central administration and treasury. Most functions relating to foreign civs will also generally be performed or accessed here. E. Population Density There is no hard limit to the number of population units that can occupy a single square, but squares will tend to house only one unit of population unless the square is being underutilized, or the population cannot find any empty land to settle. F. Coastal Villages If a population unit is using a water square, then the population itself will be housed on a coastal square closest to that water square being used. This is a special case of high population density that will be common even in the beginning of the game. G. Workers and Settlers Workers are special construction units that are essentially mobile Villages, except that they cannot grow. They still require food for survival and may indirectly contribute to the demand for shields in the area they are stationed, because terrain improvements do require shields for construction. Settlers, which use up only one population point each, are also comparable to mobile Villagers, except that they cannot grow and do not demand shields, requiring only food for survival. Their function is to found cities that are far away, and they are able to resist foreign cultures as well as the cities they originated from. Here is the rest of the summary.