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Tolls, exchange rates, and northbound international bridge traffic from Mexico

Author

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  • Thomas M. Fullerton Jr.
  • Angel L. Molina Jr
  • Adam G. Walke

Abstract

Although there have been a small number of empirical studies that analyze northbound border crossings between Mexico and the United States, very few examine the potential impacts of both tolls and exchange rates on the various traffic categories. This effort attempts to partially fill that gap in the applied economics literature by modeling northbound traffic flows at one of the largest regional economies along the border. Results indicate that business cycle fluctuations, variations in the real exchange rate, and changes in real toll tariffs all influence cross border traffic volumes. Tolls on northbound traffic into the United States are assessed by Mexico. The results also indicate that tolls can provide a reliable revenue stream for international bridge infrastructure finance in Mexico.
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Suggested Citation

  • Thomas M. Fullerton Jr. & Angel L. Molina Jr & Adam G. Walke, 2013. "Tolls, exchange rates, and northbound international bridge traffic from Mexico," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(3), pages 305-321, August.
    • Handle: RePEc:bla:rgscpp:v:5:y:2013:i:3:p:305-321
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    File URL: http://hdl.handle.net/10.1111/rsp3.12011
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • F15 - International Economics - - Trade - - - Economic Integration
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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