LAUSR

In this paper we develop the method of double operator integrals to prove trace formulae for functions of contractions, dissipative operators, unitary operators and self-adjoint operators. To establish the absolute continuity of spectral shift, we use the Sz.-Nagy theorem on the absolute continuity of the spectrum of the minimal unitary dilation of a completely nonunitary contraction. We also give a construction of an intermediate contraction for a pair of contractions with trace class difference.