The economy
Contributor/author(s): Kyle D.J.
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Supply and Demand
The economic supply and demand in your city involves interaction of the following 7 parameters:
Residential (Res) -- These are residents in your city (i.e., population).
Commercial (Com) -- These are commercial activities in your city (i.e., commercial "population").
Industrial (Ind) -- These are industrial activities in your city (i.e., industrial "population").
Recreation (Recr) -- These are things for your residents to do when they are not working (i.e., activities).
Commercial Connections (Com CX) -- These are commercial relations with the economy outside of your city (i.e., trade).
Industrial Connections (Ind CX) -- These are industrial relations with
the economy outside of your city (i.e., import/export). Workforce (Work) -- These are jobs created in your city for your residents (i.e., employment). These interactions are shown in the picture below: Available employment (Work) attracts residents (Res). These residents demand recreation (Recr). The employment is created by commerce (Com) and industry (Ind). Commerce and industry also demand connections (Com CX and Ind CX) to the rest of SimNation. The items built in your city influence supply and demand as shown in the following table: Supplies Demands Item ~~~~~~~~ ~~~~~~~ ~~~~ Rewards 128000 Recr 256 Work Amusement Park 9000 Recr 36 Work City Hall 37500 Recr 75 Work Country Club -- 135 Work Courthouse 1750 Ind 500 Work Defence Contractor 25000 Recr 50 Work Geyser Park 10000 Recr 1 Work Historic Statue 6000 Recr 8 Work Lighthouse 6000 Recr 4 Work Mayor's House -- 135 Work Medical Research Centre 2000 Res 1000 Work Military Base 48000 Recr 40 Work Performing Arts Centre -- 375 Work Science Centre 125000 Recr 200 Work Stadium 480 Com 480 Work Stock Exchange -- 500 Work University 750000 Recr, 250 Work Spaceport 750000 Ind CX, 750000 Com CX Business Opportunities -- 225 Work Maximum Security Prison 1750 Ind 250 Work Toxic Waste Conversion Plant 75000 Recr, 250 Work Casino Row 750 Com 25000 Recr, 250 Work Gigamall 1250 Com Transportation -- 2 Work Bus Station -- 2 Work Subway Station -- 2 Work Subway-to-Rail Station -- 4 Work Train Station 25000 Ind CX -- Rail neighbour connections 25000 Com CX -- Subway neighbour connections 20000 Com CX, -- Highway neighbour connections 14000 Ind CX 12000 Com CX, -- Road neighbour connections 12000 Ind CX Civic Services -- 45 Work City College -- 45 Work City Jail -- 45 Work Fire Station -- 45 Work Hospital 7000 Recr 20 Work Library 9000 Recr 45 Work Museum -- 45 Work Police Station -- 45 Work School Entertainment 4000 Recr 16 Work Ballpark 2250 Recr 9 Work Big Park 24000 Recr 48 Work City Zoo 250 Recr 1 Work Fountain 9000 Recr 18 Work Marina 1000 Recr 4 Work Playground 1000 Recr 4 Work Pond 250 Recr 1 Work Small Park Utilities -- 36 Work Desalinization Plant -- 18 Work Incinerator -- 18 Work Recycling Centre -- 18 Work Waste-to-Energy Incinerator -- 16 Work Water Treatment Plant Power Plants -- 48 Work Coal Power Plant -- 48 Work Fusion Power Plant -- 48 Work Gas Power Plant -- 48 Work Microwave Power Plant -- 96 Work Nuclear Power Plant -- 48 Work Oil Power Plant -- 32 Work Solar Power Collector Zones (effects are per tile) 23 Res 22 Recr LD LLV Res 19 Res 20 Recr LD MLV Res 18 Res 18 Recr LD HLV Res 73 Res 73 Recr MD LLV Res 71 Res 70 Recr MD MLV Res 67 Res 67 Recr MD HLV Res 157 Res 157 Recr HD LLV Res 151 Res 150 Recr HD MLV Res 147 Res 142 Recr HD HLV Res 20 Res 10 Recr Generic Res 18 Com 17 Work, 18 Com CX LD LMLV Com 17 Com 16 Work, 17 Com CX LD MHLV Com 64 Com 59 Work, 64 Com CX MD LMLV Com 61 Com 57 Work, 61 Com CX MD MHLV Com 130 Com 123 Work, 130 Com CX HD LMLV Com 128 com 117 Work, 128 Com CX HD MHLV Com 19 Com 19 Work, 19 Com CX Generic Com 19 Ind 17 Work, 20 Ind CX LD Dirty Ind 67 Ind 61 Work, 67 Ind CX MD Dirty Ind 130 Ind 127 Work, 130 Ind CX HD Dirty Ind 17 Ind 17 Work, 17 Ind CX LD Clean Ind 61 Ind 59 Work, 61 Ind CX MD Clean Ind 129 Ind 123 Work, 129 Ind CX HD Clean Ind 11 Ind 11 Work, 11 Ind CX Generic Ind 11 Ind 10 Work, 11 Ind CX Agriculture 100 Ind CX, 5 Work Airport 500 Com CX 250 Ind CX, 5 Work Seaport 100 Com CX LD = Low Density MD = Medium Density HD = High Density LLV = Low Land Value MLV = Medium Land Value HLV = High Land Value LMLV = Low/Medium Land Value MHLV = Medium/High Land Value "Generic" tiles are under construction, accumulating garbage, Examples from the table: The Courthouse reward doesn't supply anything, but demands 135 workers. The Spaceport reward supplies 750 000 of each of recreation, commercial connections and industrial connections, and it demands 250 workers. A road connection to a neighbouring city provides 12 000 of each of commercial and industrial connections, and doesn't demand anything. A single tile of low-density residential zone with low land value provides 23 residents and demands 22 recreation. A single farm tile (agriculture) provides 11 industry, and demands 10 workers and 11 industrial connections. Every city also starts with a base amount of economic connections. These represent connections provided from outside the city that are beyond your control. These drive your economy when your city is small. They are: 25000 Recreation (Recr) 25000 Commercial Connections (Com CX) (As you can see the city starts with a stronger demand for industry than commerce.) As your city grows it will use this initial supply/demand to survive. But once they are all used up you will need to add more to continue growth. For example, the initial 25000 recreation will support about 25000 residents. To grow beyond this you need to increase the supply of recreation in your city by building suitable recreation items, as listed in the large table above. (This is often called "raising or relieving a demand cap".) Employment Each job in the city attracts 2 residents. (Think of it this way: each Sim that moves to your city to find work brings with them on average one other person who does not work, e.g., spouse, child, relative, etc.) So if for example you want your city to grow to a population of 2 million, then you will need 1 million jobs available. The large table above shows how you can create these jobs. There are always 150 Sims looking for work in your city, but not living in your city (meaning they commute in). The simulation uses these commuters to help start a new city when population and industry are very small. However once the city starts growing, the importance of these external workers very rapidly becomes negligible. For example when your population is 3000 (so 1500 workers), then you have 10 times as many workers living in your city as commute in. Economic Phases When population is low, it is the city's industry that employs most of the residents. As population increases, a greater percentage of Sims will find work in commerce instead of industry. The following chart shows the required distribution of commerce and industry based on population. The zoning in your city should evolve to suit the trends in this chart: To estimate the commerce and industry percentages in your city, use the game's graph feature to display the data for commerce and industry. The numbers at the right of that graph are the commercial and industrial sector sizes. Compare these two numbers to determine the percentage distribution between them in your city. Then compare your city's percentage to the required percentage on the chart above (for your current residential population) to determine if you should adjust your zoning distribution. "Major events" influence the larger economy of SimNation, and this affects the residential demand within your city. These events are hard-coded into the game to occur at predetermined times. There is nothing you can do to change these events. But knowing when they occur can help explain why the residential demand plummets sometimes. The effect and duration of these major events are shown in the table below. Also shown is the game year assuming a starting year of 1900. Duration Year Influence [years] [%] ~~~~~~~~ ~~~~ ~~~~~~~~~ 27 1900 0 3 1927 - 5 13 1930 0 2 1943 -90 14 1945 0 6 1959 -10 20 1965 0 2 1985 -50 3 1987 + 5 18 1990 0 2 2008 -90 22 2010 0 4 2032 -20 4 2036 +10 10 2040 0 These fluctuations appear to be partly modelled after the historical economy of the USA. For example, the Great Depression appears as an influence of -5% between 1927 and 1930, and World War II appears as -90% between 1943 and 1945. After 2050 (again assuming a start of 1900) the cycle keeps repeating itself: Duration Year Influence ~~~~~~~~ ~~~~ ~~~~~~~~~ 27 2050 0 3 2077 - 5 13 2080 0 2 2093 -90 14 2095 0 ...etc. Effect of Taxation on RCI Demand The RCI tax rates affect demand (and thus growth potential) for their respective zones. For any given population there is a "neutral" tax rate which has no effect upon demand. If the tax rate is set lower than this neutral rate, then demand will be increased (encourages growth). If the tax rate is set higher than the neutral rate, then demand will be decreased (encourages decline). So there is a trade-off between tax revenues and zone demand. These trends are shown in the following chart: Note that above 320 000 population there is no further change. At the higher populations there is virtually no growth benefit due to low taxes, and high taxes carry a huge demand penalty. Keeping tax rates set equal to the neutral tax rate may be the best strategy. The trends for neutral tax rate versus population are shown in the following chart: Again, these are the RCI tax rates which will have no effect upon demand. There is no further change above 320 000 population (i.e., the neutral tax rate remains 5%). Effect of Ordinances on Demand The following ordinances influence the demand for commerce and industry: Tourist Promotion +15% Com & -1.5% Ind Water Conservation -3% Ind Power Conservation -3% Ind See also
RCI building density table
RCI building density table (detailed)
Land value vs. density tables
Bonds, Taxes, and Neighbour Deals
the economy outside of your city (i.e., import/export). Workforce (Work) -- These are jobs created in your city for your residents (i.e., employment). These interactions are shown in the picture below: Available employment (Work) attracts residents (Res). These residents demand recreation (Recr). The employment is created by commerce (Com) and industry (Ind). Commerce and industry also demand connections (Com CX and Ind CX) to the rest of SimNation. The items built in your city influence supply and demand as shown in the following table: Supplies Demands Item ~~~~~~~~ ~~~~~~~ ~~~~ Rewards 128000 Recr 256 Work Amusement Park 9000 Recr 36 Work City Hall 37500 Recr 75 Work Country Club -- 135 Work Courthouse 1750 Ind 500 Work Defence Contractor 25000 Recr 50 Work Geyser Park 10000 Recr 1 Work Historic Statue 6000 Recr 8 Work Lighthouse 6000 Recr 4 Work Mayor's House -- 135 Work Medical Research Centre 2000 Res 1000 Work Military Base 48000 Recr 40 Work Performing Arts Centre -- 375 Work Science Centre 125000 Recr 200 Work Stadium 480 Com 480 Work Stock Exchange -- 500 Work University 750000 Recr, 250 Work Spaceport 750000 Ind CX, 750000 Com CX Business Opportunities -- 225 Work Maximum Security Prison 1750 Ind 250 Work Toxic Waste Conversion Plant 75000 Recr, 250 Work Casino Row 750 Com 25000 Recr, 250 Work Gigamall 1250 Com Transportation -- 2 Work Bus Station -- 2 Work Subway Station -- 2 Work Subway-to-Rail Station -- 4 Work Train Station 25000 Ind CX -- Rail neighbour connections 25000 Com CX -- Subway neighbour connections 20000 Com CX, -- Highway neighbour connections 14000 Ind CX 12000 Com CX, -- Road neighbour connections 12000 Ind CX Civic Services -- 45 Work City College -- 45 Work City Jail -- 45 Work Fire Station -- 45 Work Hospital 7000 Recr 20 Work Library 9000 Recr 45 Work Museum -- 45 Work Police Station -- 45 Work School Entertainment 4000 Recr 16 Work Ballpark 2250 Recr 9 Work Big Park 24000 Recr 48 Work City Zoo 250 Recr 1 Work Fountain 9000 Recr 18 Work Marina 1000 Recr 4 Work Playground 1000 Recr 4 Work Pond 250 Recr 1 Work Small Park Utilities -- 36 Work Desalinization Plant -- 18 Work Incinerator -- 18 Work Recycling Centre -- 18 Work Waste-to-Energy Incinerator -- 16 Work Water Treatment Plant Power Plants -- 48 Work Coal Power Plant -- 48 Work Fusion Power Plant -- 48 Work Gas Power Plant -- 48 Work Microwave Power Plant -- 96 Work Nuclear Power Plant -- 48 Work Oil Power Plant -- 32 Work Solar Power Collector Zones (effects are per tile) 23 Res 22 Recr LD LLV Res 19 Res 20 Recr LD MLV Res 18 Res 18 Recr LD HLV Res 73 Res 73 Recr MD LLV Res 71 Res 70 Recr MD MLV Res 67 Res 67 Recr MD HLV Res 157 Res 157 Recr HD LLV Res 151 Res 150 Recr HD MLV Res 147 Res 142 Recr HD HLV Res 20 Res 10 Recr Generic Res 18 Com 17 Work, 18 Com CX LD LMLV Com 17 Com 16 Work, 17 Com CX LD MHLV Com 64 Com 59 Work, 64 Com CX MD LMLV Com 61 Com 57 Work, 61 Com CX MD MHLV Com 130 Com 123 Work, 130 Com CX HD LMLV Com 128 com 117 Work, 128 Com CX HD MHLV Com 19 Com 19 Work, 19 Com CX Generic Com 19 Ind 17 Work, 20 Ind CX LD Dirty Ind 67 Ind 61 Work, 67 Ind CX MD Dirty Ind 130 Ind 127 Work, 130 Ind CX HD Dirty Ind 17 Ind 17 Work, 17 Ind CX LD Clean Ind 61 Ind 59 Work, 61 Ind CX MD Clean Ind 129 Ind 123 Work, 129 Ind CX HD Clean Ind 11 Ind 11 Work, 11 Ind CX Generic Ind 11 Ind 10 Work, 11 Ind CX Agriculture 100 Ind CX, 5 Work Airport 500 Com CX 250 Ind CX, 5 Work Seaport 100 Com CX LD = Low Density MD = Medium Density HD = High Density LLV = Low Land Value MLV = Medium Land Value HLV = High Land Value LMLV = Low/Medium Land Value MHLV = Medium/High Land Value "Generic" tiles are under construction, accumulating garbage, Examples from the table: The Courthouse reward doesn't supply anything, but demands 135 workers. The Spaceport reward supplies 750 000 of each of recreation, commercial connections and industrial connections, and it demands 250 workers. A road connection to a neighbouring city provides 12 000 of each of commercial and industrial connections, and doesn't demand anything. A single tile of low-density residential zone with low land value provides 23 residents and demands 22 recreation. A single farm tile (agriculture) provides 11 industry, and demands 10 workers and 11 industrial connections. Every city also starts with a base amount of economic connections. These represent connections provided from outside the city that are beyond your control. These drive your economy when your city is small. They are: 25000 Recreation (Recr) 25000 Commercial Connections (Com CX) (As you can see the city starts with a stronger demand for industry than commerce.) As your city grows it will use this initial supply/demand to survive. But once they are all used up you will need to add more to continue growth. For example, the initial 25000 recreation will support about 25000 residents. To grow beyond this you need to increase the supply of recreation in your city by building suitable recreation items, as listed in the large table above. (This is often called "raising or relieving a demand cap".) Employment Each job in the city attracts 2 residents. (Think of it this way: each Sim that moves to your city to find work brings with them on average one other person who does not work, e.g., spouse, child, relative, etc.) So if for example you want your city to grow to a population of 2 million, then you will need 1 million jobs available. The large table above shows how you can create these jobs. There are always 150 Sims looking for work in your city, but not living in your city (meaning they commute in). The simulation uses these commuters to help start a new city when population and industry are very small. However once the city starts growing, the importance of these external workers very rapidly becomes negligible. For example when your population is 3000 (so 1500 workers), then you have 10 times as many workers living in your city as commute in. Economic Phases When population is low, it is the city's industry that employs most of the residents. As population increases, a greater percentage of Sims will find work in commerce instead of industry. The following chart shows the required distribution of commerce and industry based on population. The zoning in your city should evolve to suit the trends in this chart: To estimate the commerce and industry percentages in your city, use the game's graph feature to display the data for commerce and industry. The numbers at the right of that graph are the commercial and industrial sector sizes. Compare these two numbers to determine the percentage distribution between them in your city. Then compare your city's percentage to the required percentage on the chart above (for your current residential population) to determine if you should adjust your zoning distribution. "Major events" influence the larger economy of SimNation, and this affects the residential demand within your city. These events are hard-coded into the game to occur at predetermined times. There is nothing you can do to change these events. But knowing when they occur can help explain why the residential demand plummets sometimes. The effect and duration of these major events are shown in the table below. Also shown is the game year assuming a starting year of 1900. Duration Year Influence [years] [%] ~~~~~~~~ ~~~~ ~~~~~~~~~ 27 1900 0 3 1927 - 5 13 1930 0 2 1943 -90 14 1945 0 6 1959 -10 20 1965 0 2 1985 -50 3 1987 + 5 18 1990 0 2 2008 -90 22 2010 0 4 2032 -20 4 2036 +10 10 2040 0 These fluctuations appear to be partly modelled after the historical economy of the USA. For example, the Great Depression appears as an influence of -5% between 1927 and 1930, and World War II appears as -90% between 1943 and 1945. After 2050 (again assuming a start of 1900) the cycle keeps repeating itself: Duration Year Influence ~~~~~~~~ ~~~~ ~~~~~~~~~ 27 2050 0 3 2077 - 5 13 2080 0 2 2093 -90 14 2095 0 ...etc. Effect of Taxation on RCI Demand The RCI tax rates affect demand (and thus growth potential) for their respective zones. For any given population there is a "neutral" tax rate which has no effect upon demand. If the tax rate is set lower than this neutral rate, then demand will be increased (encourages growth). If the tax rate is set higher than the neutral rate, then demand will be decreased (encourages decline). So there is a trade-off between tax revenues and zone demand. These trends are shown in the following chart: Note that above 320 000 population there is no further change. At the higher populations there is virtually no growth benefit due to low taxes, and high taxes carry a huge demand penalty. Keeping tax rates set equal to the neutral tax rate may be the best strategy. The trends for neutral tax rate versus population are shown in the following chart: Again, these are the RCI tax rates which will have no effect upon demand. There is no further change above 320 000 population (i.e., the neutral tax rate remains 5%). Effect of Ordinances on Demand The following ordinances influence the demand for commerce and industry: Tourist Promotion +15% Com & -1.5% Ind Water Conservation -3% Ind Power Conservation -3% Ind See also
RCI building density table
RCI building density table (detailed)
Land value vs. density tables
Bonds, Taxes, and Neighbour Deals
