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Peso Acceptance Patterns in El Paso

Thomas Fullerton, Molina, Angel L., and Michael Pisani ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the acceptance of peso payments, or currency substitution reverse dollarization, by U.S retail firms near the international border with Mexico. Survey data are drawn from a stratified random sample of 586 retailers located in El Paso, Texas, situated across the border from Ciudad Juarez, Chihuahua, Mexico. Approximately 13 percent of the participant firms accept Mexican pesos in exchange for goods and services. Empirical results indicate that factors such as a firm’s percentage of Spanish speaking employees and distance to the nearest international bridge significantly influence the decision to accept or reject Mexican pesos.

Keywords: Currency Substitution; Mexican Peso; Border Economics; Probit Models (search for similar items in EconPapers)
JEL-codes: M21 R11 (search for similar items in EconPapers)
Date: 2009-04-17, Revised 2009-06-19
New Economics Papers: this item is included in nep-mon
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Published in Pennsylvania Geographer 1.47(2009): pp. 91-102

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