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Joint Products and Responses To a Profit Tax: the Case of Endogenous Cost Allocation

Xuejun Wang
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Xuejun Wang: Purdue University

Public Finance Review, 1996, vol. 24, issue 4, 494-500

Abstract: With a simple assumption on the cost function, an earlier article shows that an increase in profit tax will increase the joint production. This note provides a complement to that study by considering the case in which the method of endogenous cost allocation is appropriate. The previous result still holds in our framework with some additional assumptions on the demand function.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:24:y:1996:i:4:p:494-500

DOI: 10.1177/109114219602400405

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