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Microenterprise Peso Acceptance in El Paso, Texas

  • Michael J. Pisani

    ()

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

  • Thomas M. Fullerton, Jr.

    ()

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

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.

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File URL: http://www.economia.uanl.mx/revistaensayos/xxxii/2/4Thom_Fullerton_y_Michael_Pisani.pdf
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Article 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)
Pages: 75-94

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Handle: RePEc:ere:journl:v:xxxii:y:2013:i:2:p:75-94
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  1. Clements, Benedict & Schwartz, Gerd, 1993. "Currency substitution: The recent experience of Bolivia," World Development, Elsevier, vol. 21(11), pages 1883-1893, November.
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  9. Fullerton, Thomas M., Jr. & Molina, Angel L., Jr. & Pisani, Michael J., 2009. "Peso Acceptance Patterns in El Paso," MPRA Paper 17900, University Library of Munich, Germany, revised 19 Jun 2009.
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