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

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  • Xuejun Wang

    (Purdue University)

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.

Suggested Citation

  • Xuejun Wang, 1996. "Joint Products and Responses To a Profit Tax: the Case of Endogenous Cost Allocation," Public Finance Review, , vol. 24(4), pages 494-500, October.
    • Handle: RePEc:sae:pubfin:v:24:y:1996:i:4:p:494-500
    DOI: 10.1177/109114219602400405
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    Cited by:

    1. Dixon, R. & Trenchard, P. M., 2001. "Bipolar value-driven joint product costing," Omega, Elsevier, vol. 29(6), pages 479-490, December.

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