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Economies of scale and cost efficiency in the postal services: empirical evidence from Switzerland

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Author Info
Massimo Filippini
Marika Zola

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Abstract

This paper investigates the scale and cost efficiency of the Swiss Post using an econometric approach. Our empirical analysis considers a sample of postal offices operating in the Italian-speaking part of Switzerland. The paper considers estimation of a log-log cost function employing a data set for the year 2001 with information on 47 small local post offices. The empirical evidence indicates the existence of economies of scale. Further, the outcome of this analysis shows that approximately 50% of the postal offices operate close to the regional standard for efficiency.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 12 (2005)
Issue (Month): 7 (June)
Pages: 437-441
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Handle: RePEc:taf:apeclt:v:12:y:2005:i:7:p:437-441

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August. [Downloadable!] (restricted)
  2. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June. [Downloadable!] (restricted)
  3. Mehdi Farsi & Massimo Filippini, 2004. "Regulation and Measuring Cost-Efficiency with Panel Data Models: Application to Electricity Distribution Utilities," Review of Industrial Organization, Springer, vol. 25(1), pages 1-19, 08. [Downloadable!]
  4. Mizutani, Fumitoshi & Uranishi, Shuji, 2003. "The Post Office vs. Parcel Delivery Companies: Competition Effects on Costs and Productivity," Journal of Regulatory Economics, Springer, vol. 23(3), pages 299-319, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Becher & George Deltas & George Pinteris, 2006. "Reconsidering the degree of inefficiency of financial institutions," Proceedings, Federal Reserve Bank of Chicago, pages 223-240. [Downloadable!]
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