Cost Efficiency Measurement in Postal Delivery Networks
The purpose of this study is to analyze the level of cost efficiency of Swiss Post's postal delivery units to enable policy makers' as well as Swiss Post to decide on the reactions to market changes. In particular, we use different panel data models to assess cost efficiency in these units to account for unobserved heterogeneity. The results from applying Mundlak's formulation to the Pooled stochastic frontier model provides evidence that this model is not affected by a heterogeneity bias and that the cost efficiency values lie within a lower and upper bound of the other recent and standard econometric frontier models. Overall, the analysis shows that assumptions on unobserved heterogeneity are crucial and that results of econometric cost efficiency measurement models have to be interpreted with corresponding caution.
|Date of creation:||Sep 2012|
|Contact details of provider:|| Web page: https://www.bul.sbu.usi.ch|
References listed on IDEAS
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.:
- Massimo Filippini & Marika Zola, 2005. "Economies of scale and cost efficiency in the postal services: empirical evidence from Switzerland," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 437-441.
- Kumbhakar, Subal C., 1991. "Estimation of technical inefficiency in panel data models with firm- and time-specific effects," Economics Letters, Elsevier, vol. 36(1), pages 43-48, May.
- Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
- Massimo Filippini & Martin Koller & Urs Trinkner, 2010. "Economies of scale and scope and opening hours in post offices and agencies," Chapters,in: Heightening Competition in the Postal and Delivery Sector, chapter 10 Edward Elgar Publishing.
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, July.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, July.
- Martin Buser & Christian Jaag & Urs Trinkner, 2008. "Economics of Post Office Networks: Strategic Issues and the Impact on Mail Demand," Chapters,in: Handbook of Worldwide Postal Reform, chapter 5 Edward Elgar Publishing.
- Martin Buser & Christian Jaag & Urs Trinkner, 2007. "Economics of Post Office Networks: Strategic Issues and the Impact on Mail Demand," Working Papers 0008, Swiss Economics, revised Dec 2007.
- Astrid Cullmann & Mehdi Farsi & Massimo Filippini, 2012. "Unobserved Heterogeneity and Efficiency Measurement in Public Transport," Journal of Transport Economics and Policy, University of Bath, vol. 46(1), pages 51-66, January.
- Waldman, Donald M., 1982. "A stationary point for the stochastic frontier likelihood," Journal of Econometrics, Elsevier, vol. 18(2), pages 275-279, February.
- 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.
- Johnes, Geraint & Johnes, Jill, 2009. "Higher education institutions' costs and efficiency: Taking the decomposition a further step," Economics of Education Review, Elsevier, vol. 28(1), pages 107-113, February.
- G Johnes & J Johnes, 2005. "Higher education institutions' costs and efficiency: taking the decomposition a further step," Working Papers 574007, Lancaster University Management School, Economics Department.
- Mehdi Farsi & Massimo Filippini & William Greene, 2005. "Efficiency Measurement in Network Industries: Application to the Swiss Railway Companies," Journal of Regulatory Economics, Springer, vol. 28(1), pages 69-90, 07.
- Mehdi Farsi & Massimo Filippini & William Greene, 2004. "Efficiency Measurement in Network Industries: Application to the Swiss Railway Companies," CEPE Working paper series 04-32, CEPE Center for Energy Policy and Economics, ETH Zurich.
- repec:adr:anecst:y:1994:i:33 is not listed on IDEAS
- Sergio Perelman & Pierre Pestieau, 1994. "A Comparative Performance Study of Postal Services: A Productive Efficiency Approach," Annals of Economics and Statistics, GENES, issue 33, pages 187-202.
- Perelman, S. & Pestieau, J., "undated". "A comparative performance study of postal services: a productive efficiency approach," CORE Discussion Papers RP 1083, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
- Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2005. "Unobserved heterogeneity in stochastic cost frontier models: an application to Swiss nursing homes," Applied Economics, Taylor & Francis Journals, vol. 37(18), pages 2127-2141.
- Farsi, Mehdi & Filippini, Massimo, 2009. "An analysis of cost efficiency in Swiss multi-utilities," Energy Economics, Elsevier, vol. 31(2), pages 306-315, March.
- Mehdi Farsi & Massimo Filippini, 2008. "An Analysis of Cost-Efficiency in Swiss Multi-utilities," CEPE Working paper series 08-60, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2008. "Economies of Scale and Scope in Multi-Utilities," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 123-144.
- Polachek, Solomon W & Yoon, Bong Joon, 1996. "Panel Estimates of a Two-Tiered Earnings Frontier," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(2), pages 169-178, March-Apr.
- repec:adr:anecst:y:1994:i:33:p:11 is not listed on IDEAS
- Massimo FILIPPINI & Martin KOLLER, 2012. "Economies Of Scale And Scope In Postal Outlets Under Consideration Of Unobserved Heterogeneity," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(4), pages 435-443, December.
- Vincenzo Visco Comandini & Adolfo Consiglio & Stefano Gori & Emiliano Piccinin & Maria Rita Pierleoni, 2010. "The Altmark Ruling and Approaches to Measuring Efficiency of Postal Operators," Chapters,in: Heightening Competition in the Postal and Delivery Sector, chapter 5 Edward Elgar Publishing.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- 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. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:lug:wpaper:1206. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessio Tutino)
If references are entirely missing, you can add them using this form.