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Practical Approaches to USO Costing and Financing

Author

Listed:
  • Christian Jaag
  • John Lisle
  • Navin Waghe
  • Erik van der Merwe
  • Urs Trinkner

Abstract

In this paper we set out a holistic approach that incorporates recent developments in assessing the net cost of the USO and presents a robust methodology for practical implementation. We analyse the issues relating to assessing the net costs of the USO with particular focus on the benefits associated with USO and current empirical approaches to calculating the net costs. We then present an overview of approaches that have been applied in various countries and highlight their strengths and shortcomings in light of the necessarily theoretical aspects discussed in the first part of the paper. Finally, we present a practical approach that we believe assesses robustly the net cost of the USO.

Suggested Citation

  • Christian Jaag & John Lisle & Navin Waghe & Erik van der Merwe & Urs Trinkner, 2010. "Practical Approaches to USO Costing and Financing," Working Papers 0021, Swiss Economics.
    • Handle: RePEc:chc:wpaper:0021
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    Citations

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    Cited by:

    1. Jaag Christian, 2011. "Entry Deterrence and the Calculation of the Net Cost of Universal Service Obligations," Review of Network Economics, De Gruyter, vol. 10(1), pages 1-19, March.
    2. Matthew H. Robinson & J. P. Klingenberg & Andreas Haller & Urs Trinkner, 2015. "Estimating the Financial Impact of Discontinuing Saturday Delivery of Letters and Flats in the U.S," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 155-168, Springer.
    3. Urs Trinkner & Andreas Haller, 2014. "Impact of Discontinuance of Saturday Delivery for Letters and Flats," Studies and Reports, Swiss Economics, pages 1-65, February.
    4. Jaag Christian, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Review of Law & Economics, De Gruyter, vol. 9(1), pages 125-150, September.

    More about this item

    Keywords

    Regulation; Post; Universal service obligation; Financing;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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