Things I’m reading

Richard Baldwin & Simon Evenett, Next Steps: Getting Past the Doha Round Crisis, VoxEU eBook, May 28: A number of former ambassadors to the WTO present suggestions for how we might get out of the Doha dilemma in which negotiators neither make progress nor are willing to kill the round. The task is identifying a way to make a “Doha down payment” and then head for the exits.

Susan Houseman, Christopher Kurz, Paul Lengermann, and Benjamin Mandel, “Offshoring Bias in U.S. Manufacturing“, Journal of Economic Perspectives, Spring 2011: In short, the authors say price indices for imported intermediate inputs do not fully reflect the cost savings achieved through offshoring, which means that the real growth of imported intermediates has been understated. Underestimating inputs means overestimating productivity, so that’s bad news for the growth of value added in US manufacturing.