Taxation in a Global Economy

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.