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An Empirical Examination of the Case for Post Office Divestiture in the UK

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  • Hunt, Lester C
  • Lynk, Edward L

Abstract

This paper addresses several issues recently raised concerning the proposed restructuring of the U.K. Post Office. Using dynamic disequilibrium multiproduct cost functions that permit the identification of cost complementarities, it is possible to analyze the extent to which joint production characterized different service areas over the 1953/54-1987/88 period. There is no evidence of efficiency gains through the joint production of counter and mail services. Whereas within the mail sector joint production characterizes the letters and parcels area. Copyright 1991 by Scottish Economic Society.

Suggested Citation

  • Hunt, Lester C & Lynk, Edward L, 1991. "An Empirical Examination of the Case for Post Office Divestiture in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(2), pages 177-191, May.
    • Handle: RePEc:bla:scotjp:v:38:y:1991:i:2:p:177-91
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