02020cas a2200241 a 4500 AALejournalIMF009155 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865318 1018-5941 BD-DhAAL BD-DhAAL Gersovitz, Mark. The Size Distribution of Firms, Cournot, and Optimal Taxation / Mark Gersovitz. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Tax laws and administrations often treat different size firms differently. There is, however, little research on the consequences. As modeled here, oligopolists with different efficiencies determine the size distribution of firms. A government that maximizes a weighted sum of consumer surplus, profits, and tax receipts can tax firms with different efficiencies differently and provides a reference point for other, more restricted differential tax systems. Taxes include a specific sales tax, an ad valorem sales tax, and a profits tax with imperfect deductibility of capital cost, and a combination of the last two. In general there is a pattern of tax rates by efficiency of firm. It is heavily dependent on the social valuation of tax receipts. Analytic and simulation results are provided. When both ad valorem taxes and the imperfect profits tax are combined, simulations suggest that the former rate is higher and the latter rate is lower for relatively inefficient firms. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/271 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/271/001.2006.issue-271-en.xml IMF e-Library