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Monthly Economic Report - May 2016

First post
Author
CCP Falcon
#1 - 2016-06-08 14:41:08 UTC  |  Edited by: CCP Phantom
This is the monthly Economic Report thread for May 2016.

You can find the full report which was compiled by CCP Quant, in this Dev Blog.

The raw data and graphs that make up this report can be found here.

CCP Falcon || EVE Universe Community Manager || @CCP_Falcon

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Alain Colcer
Nadire Security Consultants
Federation Peacekeepers
#2 - 2016-06-08 15:12:02 UTC
I'm quite surprised by the reduction in active ISK on the economy, there was no major news of mass bans or anything, so i take it was plenty of people spending ISK on citadels and loosing them in pretty fireworks.

Also quite astounding effect for the refining tax, 91B isk sink in aproximately just 1 month of being released?
Akrasjel Lanate
Immemorial Coalescence Administration
Immemorial Coalescence
#3 - 2016-06-08 15:41:56 UTC
Brokers Fee Straight

CEO of Lanate Industries

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Vincent Athena
Photosynth
#4 - 2016-06-08 15:43:16 UTC
Two months in a row with an active ISK drop. Is it a new trend? Is it healthy? What is a healthy ISK supply level?

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Kismeteer
Bat Country
Pandemic Horde
#5 - 2016-06-08 16:15:45 UTC
Insurance had 7,057 bil in payouts and 3,364 bil in premium, shouldn't that be closer to 3,000 in payouts for 3.364 in premium?
CCP Quant
C C P
C C P Alliance
#6 - 2016-06-08 16:45:12 UTC
Vincent Athena wrote:
Two months in a row with an active ISK drop. Is it a new trend? Is it healthy? What is a healthy ISK supply level?


A lot of it is the initial landrush of buying Citadel BPOs. On top of that is the new broker fees. We'll keep an eye on this in the coming months, but I'm not too worried at this point. We can always use more buffers to put e.g. ISK rewards into new gameplay.
Scotsman Howard
S0utherN Comfort
#7 - 2016-06-08 17:04:47 UTC
Forgive me if I am missing something, but with the active isk going down, we would expect deflation. However, the mineral price index seems to be going up (I would assume this is the broker fees?).

Would one expect these to cancel each other out (prices higher as minerals go up, but deflation causes prices to go down)?

Also, does your data on the broker fees tell you how great of an affect "Offshoring" is? I cannot see that being an intended affect by CCP, so that ISK sink technically should have been much larger.
CCP Quant
C C P
C C P Alliance
#8 - 2016-06-08 17:38:52 UTC  |  Edited by: CCP Quant
Scotsman Howard wrote:
Forgive me if I am missing something, but with the active isk going down, we would expect deflation


The EVE economy is unlike the RL economy in many ways. In RL when people get richer they spend more, and their cost of living increases, you buy a bigger house, fancier and more cars, etc., your bills tend to follow your income relatively. So your fixed cost of living increases. In EVE when you get richer, you don't necessarily spend more, apart from occasionally buying fancier and more expensive ships and fittings, overall your cost of living doesn't increase. Plus, your fancy "cars" in EVE don't really depreciate in value. I'm not an economists though, so I wouldn't mind some of you professionals here explaining this better or just saying I'm way off here Big smile


Scotsman Howard wrote:
However, the mineral price index seems to be going up (I would assume this is the broker fees?

Mineral price index went up from citadel pressure, i.e. pre-patch speculation and increased mineral demand post-patch.



Scotsman Howard wrote:
Also, does your data on the broker fees tell you how great of an affect "Offshoring" is? I cannot see that being an intended affect by CCP, so that ISK sink technically should have been much larger.

As long as the isk is being offshored into an account that is accessible, i.e. not under an expired user account, it will not count as a sink. I'd say offshoring would be visible in the isk velocity graph, and it probably is, see that downward trend of it until Skill trading was introduced? A lot of people were getting a lot more isk than they really could use so they would sit on it, or invest in PLEX.

The ISK that temporarily leaves the economy when subscriptions of the holding accounts expire, they do count as a sink though. Likewise, when players resubscribe, the ISK on their accounts get faucet-ed back into the system. The total sum of this is in the "Active ISK Delta" number on this graph
Scotsman Howard
S0utherN Comfort
#9 - 2016-06-08 18:32:20 UTC  |  Edited by: Scotsman Howard
CCP Quant wrote:


Scotsman Howard wrote:
Also, does your data on the broker fees tell you how great of an affect "Offshoring" is? I cannot see that being an intended affect by CCP, so that ISK sink technically should have been much larger.

As long as the isk is being offshored into an account that is accessible, i.e. not under an expired user account, it will not count as a sink. I'd say offshoring would be visible in the isk velocity graph, and it probably is, see that downward trend of it until Skill trading was introduced? A lot of people were getting a lot more isk than they really could use so they would sit on it, or invest in PLEX.

The ISK that temporarily leaves the economy when subscriptions of the holding accounts expire, they do count as a sink though. Likewise, when players resubscribe, the ISK on their accounts get faucet-ed back into the system. The total sum of this is in the "Active ISK Delta" number on this graph


Thanks for the replies, but this one I do not know if we are on the same page.

When I say "offshoring" I am referring to the practice of setting up ranged buy orders in a citadel avoiding the broker/transaction fees associated with that part of the buy/sell process.

The asset itself never leaves Jita/the trade hub, but the flip is still occuring while the player is avoiding about 1-2% of the taxes on the buy side.

Your reply seems to be along the lines of someone storing all their spare isk on one account. I could again be missing something, but still great replies.

Edit: The term offshoring is what I have heard this practice called, so I do not know if it is an "official term".
CCP Quant
C C P
C C P Alliance
#10 - 2016-06-08 19:36:05 UTC
Definitely not on the same page then :) I was leaning on to the RL definition of it, moving money out of economies/countries.
Tipa Riot
Federal Navy Academy
Gallente Federation
#11 - 2016-06-08 20:45:21 UTC
Everything as predicted ...
... broker fee biggest sink now
... again net loss on ISK
... trade volume contracting by 15%

I'm my own NPC alt.

Alyssia Benar
Disturbing Silence
Disturbing Silence.
#12 - 2016-06-09 07:55:32 UTC
Would be nice to have a graph on how much ISK was "generated" in WH space within the last say half a year.
It feels like capital + escalation changes dried-out WH space alot.
Linkoman
Center for Advanced Studies
Gallente Federation
#13 - 2016-06-09 10:35:23 UTC
Could you please use colorblind friendly colours in your graphs? I can't even tell destroyed/mined apart in your top graph. Thanks and sorry for the inconvenience.
Croda UK
Ironforge Commerce Guild
#14 - 2016-06-09 22:30:05 UTC
On the spreadsheet for the "ProducedDestroyedMined.csv", the data in the Produced column has been changed for all prior dates. About 0 - 300m has been added for each day going back in history.

I guess i am asking what new data have you found to add into the Produced column?

For example, in last month's download for 30 April 2016 the Produced was 3,687,353,766,588.86, in this months download the amount for the same date is 3,976,816,804,981.72.

author of the blog marketsforisk discussing making ISK in Eve Online.

CCP Quant
C C P
C C P Alliance
#15 - 2016-06-10 15:05:00 UTC  |  Edited by: CCP Quant
Croda UK wrote:
On the spreadsheet for the "ProducedDestroyedMined.csv", the data in the Produced column has been changed for all prior dates. About 0 - 300m has been added for each day going back in history.

I guess i am asking what new data have you found to add into the Produced column?

For example, in last month's download for 30 April 2016 the Produced was 3,687,353,766,588.86, in this months download the amount for the same date is 3,976,816,804,981.72.


That's very interesting, and shouldn't happen, I'll look into this!

Edit: It looks like the reason for this is that items were added to the consumer price index basket a month later than they should've been added. This means they weren't counted the month before (but should've been). Maintaining the baskets is a manual task done by CCP Recurve, more of a pro bono thing when he has time for it, so it's not going to be 100% reliable Big smile
Captain Thunderwalker
Room for Improvement
Good Sax
#16 - 2016-06-10 20:28:12 UTC
was wondering if wormhole blue loot can be separated from commodities and be given there own slot?
Rivr Luzade
Coreli Corporation
Pandemic Legion
#17 - 2016-06-10 20:41:13 UTC
What are the numbers with regards to Fortizar markets in high sec compared to standard hub stations? How much value is in the Fortizars?

And more importantly, how does the earning graph look like for Fortizar markets? Recently, I notice that most Fortizar markets reduce their broker fees to 0%, thus I'd be interested in seeing an earnings graph for that.

UI Improvement Collective

My ridicule, heavy criticism and general pale outlook about your or CCP's ideas is nothing but an encouragement to prove me wrong. Give it a try.

Alyssia Benar
Disturbing Silence
Disturbing Silence.
#18 - 2016-06-10 21:09:30 UTC
Captain Thunderwalker wrote:
was wondering if wormhole blue loot can be separated from commodities and be given there own slot?
Yeah, would be nice to see.
Guess there is atleast 50% less income today (compared to the last year, before escalation changes).
Croda UK
Ironforge Commerce Guild
#19 - 2016-06-11 12:02:12 UTC
i have put my review of the May economic report on my blog.

That said, i am very surprised Trade fell 14% - not sure if that is because the data is not able to pick up trade in the Citadel markets or because the focus on building Citadels / wind down in the war caused trade to fall.

The effect of the rise in Transaction Taxes and Broker Fees is so clearly evident. Broker Fees are now the biggest ISK sink in Eve and greatly contributed to May seeing ISK actually leave the game.

In fact, May was only the fifth month on record where ISK actually left the game (April being the fourth month on record). Add in financing the war and then financing Citadels - perhaps no wonder Plex prices are under pressure.

In all, April was the month of war, May was the month of gathering and building.

author of the blog marketsforisk discussing making ISK in Eve Online.

Talon White
The White Smoke Company
White Smoke and Black Mirrors
#20 - 2016-06-11 12:25:50 UTC
Any sign of kill dump data being wrapped in the reports?
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