JOINT PRODUCTION AND TAXATION

In this paper we extend Harberger's analysis for tax incidence by allo wing for joint production. Our analysis shows that, with regard to cor porate income tax, most of Harberger's results are still valid qualita tively, although quantiatively they are different. With regard to comm odity taxation, the incidence of the tax on factor rewards depends cri tically not only on relative factor intensities, but also on relative commodity intensities in each productive activity. In this framework, we also examine the effects of taxation on commodity composition and r elative commodity prices.