Your analysis is relevant and interesting, but also very thought provoking. You point to high wages that lead to outsourcing as some of the explanations of the puzzle. Independently from the position that one has vis-à-vis your analysis, and agreeing with it or not, you have launched a valuable debate.
Last but not least, I would like to mention how much we appreciate the efforts of Ifo toward the “European Economic Advisory Group” which serves as a role model for European integration. Consisting of a team of eight distinguished economists from eight European countries, it produces, on an annual basis, a valuable report on the European Economy.