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

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  • Massimo Filippini
  • Marika Zola

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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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 12 (2005)
Issue (Month): 7 ()
Pages: 437-441

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Handle: RePEc:taf:apeclt:v:12:y:2005:i:7:p:437-441

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References

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  1. Mehdi Farsi & Massimo Filippini, 2003. "Regulation and Measuring Cost Efficiency with Panel Data Models: Application to Electricity Distribution Utilities," CEPE Working paper series 03-19, CEPE Center for Energy Policy and Economics, ETH Zurich.
  2. 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.
  3. 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.
  4. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
  5. 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.
  6. Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017, October.
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Citations

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Cited by:
  1. Massimo Filippini & Martin Koller & Urs Trinkner, 2010. "Do opening hours and unobserved heterogeneity affect economies of scale and scope in postal outlets?," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1007, USI Università della Svizzera italiana.
  2. Massimo Filippini & Martin Koller, 2012. "Cost Efficiency Measurement in Postal Delivery Networks," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1206, USI Università della Svizzera italiana.
  3. Christian Jaag & Martin Koller & Urs Trinkner, 2008. "Calculating the Cost of the Universal Service Obligation: The Need for a Global Approach," Working Papers 0010, Swiss Economics, revised Jul 2008.

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