The Historical Contribution of Postal Service to Social Welfare in the United States

The chapter delves into the historical role of the U.S. postal service in contributing to social welfare, employing econometric models to estimate the impact of economic and demographic conditions, postal pricing, technology, and regulatory changes since 1790. It highlights key periods and factors that significantly influenced the postal service's welfare contribution, such as the Roland Hill reforms and technological advancements. The research reveals that while the postal service's welfare contribution peaked in the late 20th century, it has since declined, offering insights into the complex interplay of various historical and economic factors. The study also compares different postal pricing strategies and their effects on social welfare, concluding that pricing has a minimal impact due to the inelasticity of postal demand.