This article develops a simple framework to analyse the negotiation over bribe and tax payments during the tax collection process. We show that the larger the bribe a firm offers to a tax collector, the larger the tax rebate it gets. More particularly, we show that the negotiation over bribe and...

The size distribution of firms in Uganda is highly skewed to the right both in 1997 and 2005. In this article I examine a potential explanation behind the shape of the size distribution in Uganda and identify, using data from 1997, a distortion from the tax environment that seems to bring...