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The Economics of Software Wlliam J Raduchel 36 Panel I: The Role of Software-What Does Software Do? 47 Moderator: Dale W: Jorgenon, Harvard Univerity Anthony Scort, General Motors 47 Panel II: How Do We Make Software and Why Is It Unique? 54 Modertors: Dale W. Jorgenson, Harvard University James Socas, Senate Committee on Banking How Do We Make It? Monica Lamn Stanford Universi 54 Open-Source Software 61 Ial R. Varian, University of California at Berkeley Making Software Secure and Reliable 72 Kenneth Walker, Sonic WALL Panel III: Software Measurement-What Do We Track Today? 82 Moderator: Kenneth Flamm, Universiy of eixas at Austi Measuring Prices of Prepackaged Software 83 Alan G. White, Analysis Group, Inc Einst R. Berndt, MIT Sloan School of Management Accounting Rules: What Do They Capture and 89 What Are the Problems? Shelly C. Luisi, Securities and Echange Commission Greg Beams, Ernst & Young A BEA Perspective: Private Fixed Software Investment 99 David Wasshausen. Bureau of Economic Analysis What Is in the OECD Accounts and How Good Is It? 106 Dirk Pilat, Organisation for Economic Co-operation and Development Panel IV: Moving Offshore: The Software Labor Force and 118 the U.S. Economy Moderator: Mark B. Myers. The Wharton School University of Pennsylvania Hiring Software Talent 118 Wayne Rosing, Google Current Trends and Implications: An Industry View 122 Jack Harding, eSilion Corporation Implications of Offshoring and National Policy 131 Ronil Hiru, Rochester Institute of Technology Offshoring Policy Options 139 "William B. Bonvillian, Office of Senator Joseph Lieberian Panel V: Participants' Roundtable- Where Do We Go from Here? Policy Issues?150 VModerator: William I. Raduchel aine Rosing, Googie Kenneth Flam m Un iversit of Texas at Austin Einst R. Berndt, MIT Sloan School of Manageent James Socas, Senate Committee on Banking Ronil Hira, Rochester Institute f Technology Concluding Remarks156 Dale W. Jo rgenson. Harvard University II RESI ARCH PAPER The Economics of Software: Technoogy, Processes and161 Policy ssues William i Raducwel