The focus of our paper is on the competitive effects of the proposed VAT regime relative to selected alternatives. We also highlight the welfare effects of various VAT scenarios. While an exempt operator cannot reclaim VAT paid on inputs (relevant for non-labor inputs only) and therefore faces...

The paper analyzes the impact of different regulatory models on competition and welfare in the Swiss letter market. We conclude that the US system worksharing yields the best results.

The financing of universal service provision in the postal sector has traditionally relied on granting the universal service provider a reserved area. Together with growing electronic substitution, current liberalization policies promoting competitive entry may put the traditional universal...

Based on historical data from 1980 to 2004 the paper analyzes the main drivers of mail demand and the impact of e-substitution by using time-series techniques. We find strong evidence for e-substitution. In the second part of the paper we provide forecasts for future mail volumes.

There is an increasing convergence between postal products and telecom applications which suggests the need for a co-evolution of regulation. But there is hardly any discussion in academia or in practice about the consequences for regulation. Relevant questions are: Which parts of current...

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...