The technical efficiency of the Portuguese post: A DEA methodology application

The main purpose of this study is to measure the technical efficiency of the Portuguese Post Offices by applying the DEA methodology. DEA (Data Envelopment Analysis) takes advantage of linear programming techniques that based on the existing data (referred to as outputs and inputs), establish a frontier. The efficiency of any given firm then relates directly with the distance to that established frontier. The time sample for this study includes the years from 1997 to 1999. Labor is the input whereas the various services supplied by the post offices are the outputs. As a first step the study focuses on sorting the various post offices as a function of their respective technical efficiency. In a second stage, and with a reduced sample where information existed, we were able to incorporate in the model information on the quality of the services provided. Results achieved with the DEAP program are presented and discussed.