Have we figured out what wealth, standard of living, and development do for colonized systems?

Not all of it.

Development Level is the more obvious one - it increases market quantities, and increases shipyard/outfitting quantities.
All three of them adjust the shape of the faction economy and security sliders, making certain BGS states more or less likely.
They also seem to have an effect on relative supplies and demands of commodities, and their pricing.

You don't appear to need huge amounts of any of them - the things you get from building normally are probably fine - it's just when they're really low to start with that things get a bit odd.
 
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