Estimating the Welfare Effects of Geographic Cross-Subsidies in Postal Services

Steven Sprick Schuster, Middle Tennessee State University

Given the wide availability of Postal services in the United States at identical prices in all places, the welfare effects of those services being offered will be greater in places with poor outside options or high-priced substitutes. Using nationwide data on postal services and revenues at several points in history, I estimate the welfare benefit of postal services and whether, net of taxes, the post offices represents a cross -subsidy from low-need regions to high-need ones.

No extended abstract or paper available

 Presented in Session 216. Industries, Regulations and Subsidies