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Tolls, exchange rates, and northbound international bridge traffic from M exico
Author(s) -
Fullerton Thomas M.,
Molina Angel L.,
Walke Adam G.
Publication year - 2013
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12011
Subject(s) - toll , bridge (graph theory) , revenue , economics , business , finance , medicine , genetics , biology
Although there have been a small number of empirical studies that analyse northbound border crossings between M exico and the U nited S tates, 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 modelling 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 U nited S tates are assessed by M exico. The results also indicate that tolls can provide a reliable revenue stream for international bridge infrastructure finance in M exico.