IDEAS home Printed from https://ideas.repec.org/p/kbb/dpaper/2006-05.html
   My bibliography  Save this paper

Special Post Office, Privatization and Universal Service Obligation Costs

Author

Listed:
  • Fumitoshi Mizutani

    (Graduate School of Business Administration, Kobe University)

  • Shuji Uranishi

    (Fukuyama Heisei University Faculty of Business Administration)

Abstract

By using the empirical method, this paper analyzes Japan' s ``special" post office and evaluates universal service obligation (USO) costs. With empirical analysis, we obtained the following results. First, the cost of the special post office is about 9.8% higher than that of the ``ordinal" post office. Second, USO costs are about 348 billion yen, accounting for 17.3% of total revenues generated by ordinal postal services. Also, approximately 81% of total prefectures are creating deficits. Third, if the special post office were abolished, USO costs would be reduced to 273 billion yen. Last, even with the privatization of the Japan Post, USO costs are still large at 251 billion yen. These results imply that reorganization of the post office network will be necessary.

Suggested Citation

  • Fumitoshi Mizutani & Shuji Uranishi, 2006. "Special Post Office, Privatization and Universal Service Obligation Costs," Discussion Papers 2006-05, Kobe University, Graduate School of Business Administration.
    • Handle: RePEc:kbb:dpaper:2006-05
    as

    Download full text from publisher

    File URL: https://www.b.kobe-u.ac.jp/papers_files/2006_05.pdf
    File Function: First version, 2006
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodriguez, Frank & Storer, David, 2000. "Alternative approaches to estimating the cost of the USO in posts," Information Economics and Policy, Elsevier, vol. 12(3), pages 285-299, September.
    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. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
    4. Bishop, Matthew R. & Kay, John A., 1989. "Privatization in the United Kingdom: Lessons from experience," World Development, Elsevier, vol. 17(5), pages 643-657, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fumitoshi Mizutani & Shuji Uranishi & Eri Nakamura, 2014. "Postal Services: Governments and Firms' Perspective," Discussion Papers 2014-38, Kobe University, Graduate School of Business Administration.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bozec, Yves & Laurin, Claude, 2000. "L’impact de l’annonce de la privatisation sur la performance," L'Actualité Economique, Société Canadienne de Science Economique, vol. 76(2), pages 265-298, juin.
    2. Chen, Gongmeng & Firth, Michael & Rui, Oliver, 2006. "Have China's enterprise reforms led to improved efficiency and profitability?," Emerging Markets Review, Elsevier, vol. 7(1), pages 82-109, March.
    3. Juan Carlos Morales Piñero & Joaquim Vergés i Jaime, 2007. "Public Enterprise Reforms and Efficiency in Regulated Enviroments," Working Papers 0702, Departament Empresa, Universitat Autònoma de Barcelona, revised Jan 2007.
    4. MARINI, Marco, 1996. "Property Rights and Market : Employee Privatization as a Cooperative Bargaining Process," LIDAM Discussion Papers CORE 1996023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. John S. Earle & Scott Gehlbach, 2003. "A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic," Economics and Politics, Wiley Blackwell, vol. 15(1), pages 1-32, March.
    6. Bozec, Richard, 2004. "L’analyse comparative de la performance entre les entreprises publiques et les entreprises privées : le problème de mesure et son impact sur les résultats," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(4), pages 619-654, Décembre.
    7. Simon Fink, 2013. "Policy Convergence with or without the European Union: The Interaction of Policy Success, EU Membership and Policy Convergence," Journal of Common Market Studies, Wiley Blackwell, vol. 51(4), pages 631-648, July.
    8. Agarwal, Jamuna Prasad & Nunnenkamp, Peter, 1992. "Methods and sequencing of privatization: what post-socialist countries can learn from Chile," Kiel Working Papers 527, Kiel Institute for the World Economy (IfW Kiel).
    9. Anastassios Gentzoglanis, 2002. "Privatization, Investment and Efficiency in the Telecommunications Industry: Theory and Empirical Evidence from MENA Countries," Working Papers 0230, Economic Research Forum, revised 10 Oct 2002.
    10. Gautier, Axel & Wauthy, Xavier, 2012. "Competitively neutral universal service obligations," Information Economics and Policy, Elsevier, vol. 24(3), pages 254-261.
    11. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
    12. N.F. Cruz & R.C. Marques & A. Marra & C. Pozzi, 2014. "Local Mixed Companies: The Theory And Practice In An International Perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 1-9, March.
    13. Pradeep Kautish, 2010. "Study On Impact Of Environmental Change On Selected Public Sector Enterprises In India," Romanian Economic Business Review, Romanian-American University, vol. 5(2), pages 68-88, June.
    14. Riham Ahmed Ezzat, 2015. "Paving the way for better telecom performance: Evidence from the telecommunication sector in MENA countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01164199, HAL.
    15. Megginson, William Leon, 2005. "The Financial Economics of Privatization," OUP Catalogue, Oxford University Press, number 9780195150629.
    16. Anupama Sen and Tooraj Jamasb, 2012. "Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    17. Winston, Clifford & Yan, Jia, 2011. "Can privatization of U.S. highways improve motorists' welfare?," Journal of Public Economics, Elsevier, vol. 95(7), pages 993-1005.
    18. Claessens,Constantijn A.*Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
    19. Fumitoshi Mizutani & Eri Nakamura, 2017. "How do governance factors affect inefficiency? Stochastic frontier analysis of public utility firms in Japan," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(3), pages 267-289, September.
    20. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kbb:dpaper:2006-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yasuyuki Miyahara (email available below). General contact details of provider: https://edirc.repec.org/data/bskobjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.