Calculating the Cost of the Universal Service Obligation: The Need for a Global Approach

Christian Jaag, Martin Koller and Urs Trinkner

No 10, Working Papers from Swiss Economics

Abstract: The paper presents the basic approaches to calculate the cost of the USO and compares them with the requirements of the 3rd postal directive. We conclude that the profitability cost approach will lead to consistent estimations if it is applied in a global way. We illustrate our findings with an econometric estimation of the net costs of Swiss Post?s obligation to provide a nationwide post office network for postal and financial services. We finally illustrate that the financing mechanism in place must be considered as well as there are important drawbacks on the cost of the USO.

Keywords: USO; net costs; cost of the universal service obligation; financing; Post Office Network; Global Approach (search for similar items in EconPapers)
JEL-codes: L51 M38 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2008-05, Revised 2008-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Progress in the Competitive Agenda in the Postal and Delivery Sector, edited by Crew, M A; Kleindorfer, P R., Cheltenham, 113-127

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http://www.swiss-economics.ch/RePEc/files/0010JaagKollerTrinkner.pdf

Related works:
Chapter: Calculating the Cost of the Universal Service Obligation: The Need for a Global Approach (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:chc:wpaper:0010

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