# Typed Entity Schema v1.0

Extends the economic entity schema with two classification fields produced
by the L2 `classify-entities` pipeline stage.  An entity that has passed
through L2 classification has been assigned an **Entity Type** and a
**VSM System** by an LLM, each with a one-sentence rationale.

---

## Additional Sections

The following sections are added to the base entity file (or stored as
separate classification files in `output/classifications/`):

### Entity Type

**Required.** One of the five controlled values below.

| Value | Definition |
|---|---|
| **Element** | A stock, agent, artifact, or institution that persists — a *noun*, something that exists independently (e.g. Capital Stock, Corn, Colony, Guild) |
| **Process** | A flow, activity, or transformation with duration — something that *happens* rather than *exists* (e.g. Division of Labour, Credit Extension, Trade Route) |
| **Relation** | A structural dependency or causal link between two elements — a *connector* or mechanism (e.g. Rent determined by Price; Wages bounded by Profit Margin) |
| **Principle** | An abstract law or invariant that holds across contexts — a rule or theoretical claim (e.g. Comparative Advantage, Diminishing Returns, Opportunity Cost) |
| **Institution** | A socially constructed rule system, norm, or governance structure (e.g. Banking System, Apprenticeship Law, Taille, Navigation Acts) |

**Note:** Types are not mutually exclusive at the margin — *Market Price*
is both a Relation (between cost components and clearing condition) and an
emergent property of an Element (the market).  Assign the **primary** type:
the one that best explains the entity's role in Smith's argument.

### VSM System

**Required.** One of the six controlled values below.

| Value | Beer's definition | WoN examples |
|---|---|---|
| **S1** | Primary operations — the productive activities of the system | Agricultural labour, manufacturing, carrying trade |
| **S2** | Coordination — anti-oscillation, price signals between operations | Market Price, Natural Price, Wages of Labour |
| **S3** | Management — resource allocation and operational control | Capital Allocation, Banking, Taxation |
| **S3\*** | Audit — inspection, compliance, integrity checking | Customs Enforcement, Assay, Coinage |
| **S4** | Intelligence — adaptation, environmental scanning | Invisible Hand, Comparative Advantage, Foreign Trade Intelligence |
| **S5** | Policy — identity, ultimate authority, normative purpose | Mercantile System, System of Natural Liberty, Public Debt Policy |

### Type Rationale

**Required.** One sentence explaining why this Entity Type was assigned,
grounded in the entity definition.

> *Example:* "Capital Stock is a persistent stock of accumulated resources
> that enables productive operations, making it an Element rather than a
> Process."

### VSM Rationale

**Required.** One sentence grounding the VSM assignment in Beer's
definitions as applied to the WoN domain.

> *Example:* "Capital Stock is deployed at the operational level to
> produce goods and services, placing it squarely within S1 (primary
> operations)."

---

## Validation Rules

1. **Entity Type** MUST be one of: Element, Process, Relation, Principle,
   Institution.  Any other value is a validation error.
2. **VSM System** MUST be one of: S1, S2, S3, S3*, S4, S5.
3. **Type Rationale** and **VSM Rationale** MUST be non-empty strings.
4. A classification file for slug `X` MUST be stored at
   `output/classifications/X.md`.

---

## Metrics Enabled by L2

Once all entities are classified, the following collection-level metrics
become available:

| Metric | Concern | Question |
|---|---|---|
| **type_distribution** | Granularity | Is the collection balanced? |
| **vsm_type_matrix_cells** | Coverage | How many (type, VSM) coordinate pairs are occupied? |
| **type_entropy** | Granularity | Is the type distribution diverse or dominated by one type? |
| **orphan_relations** | Coherence | Are Relation-typed entities that name no elements they connect? |
| **principle_grounding** | Consistency | Does each Principle have at least one Element or Process it constrains? |

---

## File Format

Classification files use YAML frontmatter + markdown body:

```markdown
---
entity_slug: capital_stock
entity_type: Element
vsm_system: S1
type_rationale: Capital Stock is a persistent stock of accumulated resources
  that enables productive operations.
vsm_rationale: It is the primary productive resource deployed at the
  operational level (S1).
classified_by: openrouter/claude-sonnet-4
classified_at: 2026-02-23T14:00:00Z
---

# Classification: Capital Stock

## Entity Type

Element

## VSM System

S1

## Type Rationale

Capital Stock is a persistent stock of accumulated resources that enables
productive operations.

## VSM Rationale

It is the primary productive resource deployed at the operational level (S1).
```
