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Some related studies: Al-Marhubi, F. A. (2000). Corruption and inflation. Economics Letters, 66(2), 199-202. The analysis is based on cross-country data consisting of 41 countries from Asia and Latin America for which data is available on four alternative indices of corruption (two from Transparency International, one is the Business International index, ...


10

The expression in question is in footnote $11$ of the referenced article. Reading the paper, we see that the decision variable here is "the payout rate", which is the reciprocal of $P$. So equivalently, we can solve the maximization problem with respect to $P$ (and not w.r.t. $Q$). More over, "price elasticity of demand" involves the derivative of $Q$ with ...


6

While it´s true that there is no direct relationship between corruption and inflation, there are mechanisms which can lead to corruption acting to influence inflation through the monetary system. Inflation is primarily a direct function of the money supply, and an inverse function of total production. If corruption takes the form of corrupt bank lending, ...


4

If I have understood correctly, the question asks what should we know so that we can determine the wage using only information on the unconstrained workers. Here is a toy static model: Let's say we have $N_u$ unconstrained workers and $N_c$ constrained workers. Each has a total labor endowment $t$. Worker population is denoted $N_c+N_u = N$. The ...


3

Corruption undermines its country economy, and that eventually causes inflation, but: there are known examples of extreme corruption cohabiting with little to no inflation for some period of time, like Ukraine 2011-2013. Quoting Wikipedia: In 2014's Transparency International Corruption Perceptions Index Ukraine was ranked 142th out of the 175 countries ...


2

I'm just going to answer one part of the question, the trickiest and most controversial one in my opinion: How to determine the costs/profits of each part. It sounds tricky: Even if you find the most efficient way of not-recycling trash (be it burning, dumping on a lake, on the moon, or in a third world country), how do you evaluate the costs of ...


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