A structural model for corporate profit in the U.S. industry

Gomez-Sorzano, Gustavo (2006): A structural model for corporate profit in the U.S. industry.

Abstract

I estimate a theoretically and statistically satisfying model to account for corporate profit represented by Net Rental Income (NRI) for one of the largest Real Estate Investment Trust companies (REIT) in the U.S. I claim that I have found an accurate method to forecasts the direction and dollar amount of corporate profit in the apartment industry in The U.S. that can be extended to the remaining branches of the U.S. industry. The variables that together account for ninety seven percent of the variation in NRI for this apartment company are, one-period time lag of lease renewals, the Federal Funds interest rate end of month, total gross potential of the company, total concessions, two-period time lag of move-ins, the ratio between total non-farm employment and total construction permits authorized, the inventory of houses in the U.S, one-period time lag of move-outs and this REIT apartment units occupied.

• Item Type: MPRA Paper
• Institution: leasingmetrix group inc
• Language: English
• Keywords: REIT; Corporate Profit; Net Rental Income (NRI); demand for lease renewals
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D41 - Perfect Competition; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory

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