The increasing international mobility of capital, firms and consumers affects tax policies in most OECD countries, playing a major role in reforming national tax systems. Haufler uses standard microeconomic analysis to consider the fundamental forces underlying this process. Topics include a variety of different international tax avoidance strategies--capital flight, profit shifting in multinational firms, and cross-border shopping. Haufler addresses the issue of coordination in different areas of tax policy, with emphasis on regional tax harmonization in the EU. Also included is a detailed introduction to recent theoretical literature.

This book has been written while the author was a member of the long-term research program "Internationalization of the Economy" (Sonderforschungsbereich 178) at the University of Konstanz. Its subject, the harmonization of commodity taxes in the European Community's internal market, has been intensely - and controversially - debated among both economists and legal scholars. The interdisciplinary contacts in the research program have contributed to the shape of the present study, even though the analysis is confined to the economic aspects involved. lowe sincere thanks to my academic teacher, Professor Bernd Genser, who con- stantly supported this work with both general advice and detailed comments and who created within his research unit a stimulating and cooperative environment. Professor Albert Schweinberger shared some of his expertise on trade issues with me and made a number of valuable suggestions. I am also grateful to Professor Hans- Jurgen Vosgerau for his successful efforts to create favorable working conditions, and for support on several occasions. I have further benefitted from discussions with both members and non-members of the research program in Konstanz. Helpful comments and suggestions were re- ceived from Max Albert, Professor John Chipman, Karl-Josef Koch, Professor Wil- helm Kohler, Jurgen Meckl, Gunther Schulze, Professor John Whalley, and Professor Wolfgang Wiegard. Stefan Menner introduced to me the legal perspective on tax har- monization and helped me to overcome at least some of the barriers of specialization.

The increasing international mobility of capital, firms and consumers has begun to constrain tax policies in most OECD countries, playing a major role in reforming national tax systems. Haufler uses the theory of international taxation to consider the fundamental forces underlying this process, covering both factor and commodity taxes, as well as their interaction. Topics include a variety of different international tax avoidance strategies - capital flight, profit shifting in multinational firms, and cross-border shopping by consumers. Situations in which tax competition creates conflicting interests between countries are given particular consideration. Haufler addresses the complex issue of coordination in different areas of tax policy, with special emphasis on regional tax harmonization in the European Union. Also included is a detailed introduction to recent theoretical literature.