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Microenterprise Peso Acceptance in El Paso, Texas

Author

Listed:
  • Michael J. Pisani

    (Central Michigan University. Mt. Pleasant, MI 48859.)

  • Thomas M. Fullerton, Jr.

    (University of Texas at El Paso. El Paso, TX)

Abstract

Utilizing a unique sample of 253 microenterprise border retailers from El Paso, Texas, this paper explores the possibility of cash payment from cross-border shoppers using Mexican pesos. We find that one-fifth of microenterprise retailers in El Paso accept payment in Mexican pesos. Increased peso acceptance rates are associated with retailer proximity to Mexico and business segment in which the retailers compete. El Paso microenterprises are also more likely than their medium- to large-business counterparts to allow payments to be made using Mexican pesos. The opportunity cost of currency substitution is examined for accepting and yet-to-accept firms.

Suggested Citation

  • Michael J. Pisani & Thomas M. Fullerton, Jr., 2013. "Microenterprise Peso Acceptance in El Paso, Texas," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 75-94, November.
    • Handle: RePEc:ere:journl:v:xxxii:y:2013:i:2:p:75-94
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Microenterprises; Currency Substitution; Reverse Dollarization; Cross-Border Shoppers; El Paso Texas.;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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