Microenterprise Peso Acceptance in El Paso, Texas

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 ac...

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Bibliographic Details
Main Author: J. Pisani, Michael
Format: Article
Language:Spanish
Published: Universidad Autónoma de Nuevo León 2013
Subjects:
Online Access:https://ensayos.uanl.mx/index.php/ensayos/article/view/60
Description
Summary: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. JEL Classification: M21, F31, D22.
Physical Description:Ensayos Revista de Economía; Vol. 32 No. 2 (2013): November 2013; 75-94
Ensayos Revista de Economía; Vol. 32 Núm. 2 (2013): NOVIEMBRE 2013; 75-94
2448-8402
1870-221X