Microenterprise Peso Acceptance in El Paso, Texas
AbstractUtilizing 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.
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Bibliographic InfoArticle provided by Universidad Autonoma de Nuevo Leon, Facultad de Economia in its journal Ensayos Revista de Economia.
Volume (Year): XXXII (2013)
Issue (Month): 2 (November)
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Find related papers by JEL classification:
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
- F31 - International Economics - - International Finance - - - Foreign Exchange
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
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