A comparative static analysis of tax incidence

The model presented by Harberger (1962) in his famous article has received a good deal of attention from economists concerned with the incidence of taxes in a general equilibrium setting. Through problems posed by using the Harberger model have been frequently pointed out by several authors, no attempt has been made to generalize the model to deal adequately with the tax incidence problem. This paper aims to follow a new method of conducting a comparative static analysis of tax incidence, and to extend the results derived by earlier contributions in a more general context.