Microenterprise Peso Acceptance in El Paso, Texas

Michael J. Pisani and Thomas M. Fullerton, Jr., 2013, “Microenterprise Peso Acceptance in El Paso, Texas,” Ensayos Revista de Economía 32(2), 75-94

25 Pages Posted: 8 Nov 2013

See all articles by Michael J. Pisani

Michael J. Pisani

Central Michigan University - College of Business Administration

Thomas M. Fullerton

University of Texas at El Paso - College of Business Administration

Date Written: January 15, 2013

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.

Keywords: Microenterprises, Currency Substitution, Reverse Dollarization, Cross-Border Shopping, El Paso

JEL Classification: M21, F31, D22

Suggested Citation

Pisani, Michael J. and Fullerton, Thomas M., Microenterprise Peso Acceptance in El Paso, Texas (January 15, 2013). Michael J. Pisani and Thomas M. Fullerton, Jr., 2013, “Microenterprise Peso Acceptance in El Paso, Texas,” Ensayos Revista de Economía 32(2), 75-94 , Available at SSRN: https://ssrn.com/abstract=2351342

Michael J. Pisani

Central Michigan University - College of Business Administration ( email )

Mt. Pleasant, MI 48858
United States

Thomas M. Fullerton (Contact Author)

University of Texas at El Paso - College of Business Administration ( email )

500 West University
Mail Code: 00543
El Paso, TX 79968-0545
United States
915-747-7747 (Phone)

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