413047-Underground-Commercial-Sex-Economy

Using the results of this model, we can estimate currency-GDP ratios for each city that take into account
variation over time and across cities in economic conditions associated with currency levels. This yields
more accurate estimates of the currency-GDP ratio. In practice, the difference between these regressionbased
estimates and naïve ones (simply applying the national average currency-GDP) are fairly small. 42
The table below displays these estimates.
City
Year
Regression estimate
(in billions of 2005 dollars)
Naïve estimate
(in billions of 2005 dollars)
Ratio
Atlanta 2003 12.57 13.21 0.95
Atlanta 2007 13.82 14.78 0.94
Dallas 2003 19.59 16.56 1.18
Dallas 2007 24.23 19.5 1.24
Denver 2003 8.91 7.25 1.23
Denver 2007 9.18 7.97 1.15
Kansas City 2003 4.45 5.07 0.88
Kansas City 2007 4.64 5.48 0.85
Miami 2003 10.31 12.26 0.84
Miami 2007 10.85 14.28 0.76
San Diego 2003 7.79 7.97 0.98
San Diego 2007 8.49 8.98 0.94
Seattle 2003 10.37 10.06 1.03
Seattle 2007 13.05 12.02 1.09
DC 2003 17.83 18.12 0.98
DC 2007 20.81 20.63 1.01
The computed estimates of the cash in circulation
are given in the table below.
Table 3.11 Final Estimates of the Left-hand Side (
): Total Cash in Circulation (billions)
Year Atlanta Dallas Denver Miami San Diego Seattle DC
2003 $13.2 $16.6 $7.25 $12.3 $7.97 $10.1 $18.1
2007 $14.8 $19.5 $7.97 $14.3 $8.98 $12.0 $20.6
42 Specifically, we used the average currency-GDP ratio from 2000–2012: 0.0574.
37