Fwurg

[Veolian Commonwealth]

((OOC: Continued from the opening of the summit))

The macroeconomics track features speakers talking about intergalactic scale production and specialisation. The programme for the track is:

Macroeconomics Track

Labour Pricing goods valuation and tax correction
Speaker: Dr. Dhana (Mirda Center for Applied Economics, Veolian Commonwealth)

"This talk will present a fundamental approach to valuation of tradable goods, including corrections for Union taxation. The valuation will be shown in practice through a real-life use-case."


Pricing based on return of investment
Speaker: Danar Disentris, Speaker Miathan Consult for Economics (Miathan High Economical Consult, Teprogrenaian Consensus)

"Danar Disentris will show what the Return on Investment is on products and how this can be used to calculate prices."


Tax N-set estimation
Speaker: Dr. Sampatti (Mirda Center for Applied Economics, Veolian Commonwealth)

"In this talk, we will present our findings on the estimated welfare impact and taxable values of tax sets other than the traditional sets."


Commitment, focus and timing are the key factors in mass production
Speaker: Zatiri Ferumdra (Omnipotari Corporation, Praetorian Empire)

"Zatiri Ferumdra will explain the need to focus the Union economy on mass producing one or two products per faction."


Natural aptitude and eduacation in the production process
Speaker: Dr Anna Alkaev (Unified Republic of Darya)

"Dr Alkaev will explain how using the natural aptitude of a race and enhancing that with good education impacts production."

After the talks, a discussion panel consisting of the speakers and several invited guests will be available for answering questions.

[Dr. Dhana (mask of Veolian Commonwealth)]

Labour Pricing goods valuation and tax correction

The announcer informed the audience that dr. Dhana, of the Mirda Center for Applied Economics of the Veolian Commonwealth was going to speak about "Labour Pricing goods valuation and tax correction"

"My name is dr. Dhana, and today I will show you a fundamental approach to pricing goods based on labour costs and Union taxation. What I will tell you is not intended as a way to correctly price goods, but as a guideline for comparison of pricings.

Before we start, we need to keep in mind that the valuations of products and goods differs depending on your point of view. Because of this the valuation of your world may strongly differ from those of other worlds. In this talk, I will assume the point of view of a buying world that is going to use the goods to increase the quality of life of their citizens.

We start out simple. The value Vp of a product can be expressed as Vp = Tv / Ts, with tax set value Tv and tax set size Ts. Based on this simple formula, we would valuate a that goes into a 12-set at 0.75 .

Now, we add the Union taxation factor Ut. Vp = Tv / Ts * (1-Ut). The actual value of Ut is dependant upon the expected taxation bracket the tax set will go into. Since this is not a trivial to determine, we will be using Ut_ga, the guaranteed average Union taxation factor: nearly every world can determine a set number of taxes from other trades, allowing them to determine a lowerbound for the tax bracket average.

Give this updated function, the would be valuated at 0.6 , if the Union taxation factor of the guaranteed average would be 0.2, which corresponds to taxation bracket 2 of 20%.

Now that our function includes Union taxation, we can estimate a guideline for the price of a product. Now we will work on estimating the price of a raw material."

"The trick is to realize that a product is nothing but a combination of raw materials and labour. Then, we estimate the prices of those components. In fact, we can apply this reduction again, and find that raw materials are nothing but an application of labour.

If we apply this reduction to our formula, we find that we can express the value of a tax set not based on the products involved in it, but based on the labour involved in creating the tax set. By substituting the labour size Ls for Ts, we obtain the function Lp = Tv / Ls * (1 - Ut_ga) that estimates the price of a single labour.

Based on the newly found function, we estimate the price of a single labour of the three labour necessary for the at 0.2 . This newly found function gives us a good estimate of a single labour in the case of a 12-set in tax bracket 2.

Based on this function, we can estimate the cost per labour for every tax bracket and tax set size:"

"As you can see, a 12-set in the 50% taxation bracket, is as desirable as a 40% taxated 9-set, or a 20% taxated 6-set. Of course, if a world is capable of supplying their citizens with 12-sets.

If you have questions, insights or ideas for this direction of work, I will join the discussion panel after the talks."
Dr. Dhana

[Danar Disentris (mask of Teprogrenaian Consensus)]

Pricing based on return of investment

A female Teprogrenus Danar entered the podium. She was wearing something what would best be described as the chest piece of a functional ceremonial armour. She was bearing the insignia of the economical Consults in the centre of the armour-clothing.

"Good day and Avé, my name is Danar Disentris and I'm going to tell you something about return on investment, also known as ROI, and how to use that as a base for the prices of your products.

It has several costs to produce a zone: The zone, power, physical space, technologies etc. You can add all these costs, determine over what time period you'd like to have them repaid and determine that way if it is worth the investment and the price of the product.

For example: A standard zone costs 2000 and produces 100 goods. It also requires 10 which is one tenth of a standard power zone when you don't use orbital power production. Given that your world have free zones left and thus you don't calculate costs for the zone, the total price of a standard zone would be 2200 . I will be using this price for my further examples.

You could say that you like to pay of the zone with one standard year, or 52 . In that time, the zone produces 5200 goods. The price of 2200 then have to be calculated over those 5200 goods. Making the price of a good slightly more than 0.423 per good. This goes for all sorts of goods: raw materials, products, special goods...

The price of a product, Food for example, would than be 3 times 0.423-and-a-little: 2 times organics and 1 time the product zone.

However most factions don't like to pay 1.27 for their food, so to be economical viable, the return on investment of a standard zone is a little longer. More like 100 , the price of a single good will than be 0.22 and product like food would be 0.66 .

Now the question: Why would you do this, why would you calculate based on when the zone has produced enough as it has cost. Well this is simple: Some misinformed managers would say this is the good time to replace the zone with a new one, but actually, after the break even point of the return on investment, the zone finally starts to produce . In the way of that all the created by the zone is pure profit. During the decided period of the return of investment, the zone does nothing more than repaying what it has costs. Because all the you put in the zone, you could have put in something else as well without having to wait 100 .

A last example:

On the lava planet Samahadrahac in the Parumecaetes System, a metals zone produces 160 per . There are two ways how this can influence the return on investment: The first one is with a ROI of 100 , the cost of a would be 0.1375 . The other way is to reduce the ROI, with a price of 0.22 per , the ROI is 63 . After that, the zone no longer costs but creates profit.

Thus to summarize:

Determine the costs of a zone, including technologies, power and other factors.
Determine the time you like to have the zone be repaid.
Determine the costs that follows of this requested period of time.
Determine if it's worth the investment.
Act according to your conclusions."
Danar Disentris

[Dr. Sampatti (mask of Veolian Commonwealth)]

Tax N-set estimation

Dr. Sampatti of the Mirda Center for Applied Economics is announced next. Hist talk is entitled "Tax N-set estimation".

"Hello everyone, and welcome back after the break. I am docter Sampatti, and today I will share with you my findings on the estimation of welfare impact and the taxable value of non-traditional tax sets.

As all of you will be well aware the welfare of ones citizens is correlated with the taxable income of said citizens, unless of course, your government is a tyrannical dictatorship such as the Mandalorian Fleets impose on their worlds.

We all know the impact of traditional tax sets on welfare. However, there are a large number of non-traditional tax sets. These tax sets are not represented directly, but are represented by certain configurations of 3-sets, 6-sets, 9-sets and 12-sets. Regardless of their unconventional, and elusive, nature, they still have worth to a world. I am speaking of the 4-sets and 5-sets, the 7-sets and 8-sets and, allthough difficult to distinguish from their larger cousin, the 10-sets and 11-sets."

"These sets, while not immediately visible due to the way we model our economies, still have a large impact on the economy of a world, and their options for trade. Based on a large data set of collected taxable values over several worlds, the values of these sets can estimated as follows."

Set Size

Value

0

0,000

1

0,000

2

0,000

3

1,000

4

1,333

5

1,667

6

3,000

7

3,500

8

4,000

9

6,000

10

6,667

11

7,333

12

9,000

"As you can see, The non-traditional sets are grouped together with their traditional counterparts. Interestingly, the differences insides the family of 3-set are 2/6 , the differences between the 6-set family members if 3/6 , and the differences of the 9-sets is 4/6 .

At first glance it would seem prudent for a world to ensure that they convert 8-sets to 9-sets before converting 11-sets to 12-sets since the jump from 8-sets to 9-set will create an additional 2 per set. While the 8 to 9 conversion is desirable, one must keep in mind the fact that 11-sets that are converted to a 12-sets will create a large amount of leftover products, which in turn can be used to create new sets.

Another thing of note is the family of 0-sets: the 0-set, 1-set and 2-set. At first glance, they are worht nothing. However, looks can be deceiving. If we take a single product away from a 10-set to jump a 2-set to a 3-set, we lose 4/6 , but we gain 6/6 ."

"To conclude, I advise you to take a good look at non-traditional tax sets hiding behind the tax sets of your world. I would not be surprised to see a good number of 2-sets, 5-sets and 8-sets hidden in there, all of which would greatly benefit from some attention."

Dr. Sampatti

[Zatiri Ferumdra]

Commitment, focus and timing are the key factors in mass production

Next up is the short talk by Zatiri Ferumdra of the Omnipotari Corporation of the Praetorian Empire.

"Specialisation on one or two products is the most efficient method to increase the output of your system and increase your income. By utilizing raw material corporations to create a large amount of raw materials on focused planets combined with a population that is focused on creating these products with possibly even a product corporation your system can achieve a tremendous output.

However if only one faction applies this strategy they will be having a large amount amount of one product available without being able to combine it in tax sets. In such a case the faction could try to sell its products at a lower price but this would be wasting the investment in efficiency.

The solution to this problem is scaling production with at least three factions at once. Timing and commitment is the key. With more factions joining you can create larger tax sets and get more profit from the products. If every faction is capable of producing their own product efficiently they can trade the goods at a 1:1 ratio and both get the maximal return. If all factions that commit to this plan mass produce their own products at the same time the increased output can be used directly without loosing profit by waiting for other factions.

With the Praetorian Empire using their expertise in and they can easily create a large amount of and . If they are joined by the Veolian Commonwealth that is focused on and who could easily create a large amount of and they are together capable of creating big 3-sets. However if the Astai Republic would join with their specialized industry they could add a large amount of and to the sets. With only these three factions there would be a large amount of 6-sets available making a product be worth 0.5 without any faction having to shortsell their products due to the fact that they are the only faction producing at such a large scale.

The Praetorian Empire will be available at the summit to discuss the available options for mass production of products. We are willing to invest in other factions to make this all possible in the near future.

The Praetorian Empire is optimized for and output and plans to make 500 and 500 available before 160. We are looking for partners that are capable of producing 500 of one or two products as well and are willing to trade to create large tax sets."

[Dr. Anna Alkaev (mask of Unified Republic of Darya)]

Natural aptitude and eduacation in the production process

The announcer next gave the floor to Dr. Anna Alkaev. A youngish Mudry woman stepped on the stage her brown hair in a ponytail.

"Greetings comrades as most of you can guess my name is Anna Alkaev and I will talk about how reinforcing the natural aptitude of a race trough schooling can improve production. Most of you are aware that Mudry are known for there and products." The background picture changed to show a Daryan factory and some well known Daryan products such as the Avtomat Blasterikova mk-447 "And Sundarians for there and products." The picture changed to a more lab like factory where Sundarians were at work and some typical Sundarian products.

"And that these groups are well known for there products is not strange for example look at Zone 8 and Zone 10 on Darya and there production values." The image changed again this time showing the respective production differences of 210 and 270 . "As you can see the production of Construction materials is 28,5% higher than the food production. With environmental circumstances that are equally beneficial to both products. One can see the advantage of having Mudry working in Construction material factories." The image changed to show the production of Glasslyn Zone 11 and 12 with 275 and 210 respectively. "And we can see a similar increase on Glasslyn when Sundarians are allowed to work on there products."

"What most assume is that this comes from training or just natural aptitude. It is actually from both as can be seen in the schoolings of both groups as both groups have special schoolings for subjects related to these materials. But it is not from schooling alone and this can be seen from the schooling results in Daryan schools where on average the grades for subjects related to there materials are higher than those of other subjects." The ppicture changed to show grade averages over different subjects such as mechanical engineering compared to computer science and several others.

"So to conclude of this summit find out what your people are good at and focus on that and you can see significant increases in production."
Dr. Anna Alkaev

[Veolian Commonwealth]

After the talks came a short break for coffee, tea, and other beverages while the stage was refurbished to allow for a discussion panel.

When the guests came back in the announcer introduced the members of the discussion panel:

• Dr. Dhana of the Mirda Center for Applied Economics
• Danar Disentris, speaker of the Miathan Consult for Economics
• Dr. Sampatti of the Mirda Center for Applied Economics
• Zatiri Ferumdra of the Omnipotari Corporation
• Dr Anna Alkaev of Unified Republic of Darya

Two female veolians carried microphones to allow guests to ask questions.

((OOC: Feel free to ask questions. You don't have to wait for the previous question to be answered, the answerers can make clear which question they are answering!

If you have OOC questions on the math or the logic behind a talk, or didn't fully understand it, you can also ask the question IC -- more roleplay is more good.))

[Senator Ardios Eldrilith]

"Danar Disentris is this the process that the Teprogrenaian Consensus applies to handle their construction or is that how they should handle it in the future?"

[Teprogrenaian Consensus]

"Neither of those actually. This process is used as a tool aside tools like tax set evaluation, labour costs political ties estimations and many more. However this process should be used more often in order to determine in what project to invest next. This to prevent economical tragedies between our consumer good sector, entertainment sector and gasses sector."

[Veolian Commonwealth]

After some inconsequential questions from significantly less notable members from the audience, the moderator closed the discussion panel with thanks to the panel members.

((OOC: The summit is closed in the closing ball))