Fan, R Y C; Ng, S T and Wong, J M W (2010) Reliability of the Box-Jenkins model for forecasting construction demand covering times of economic austerity. Construction Management and Economics, 28(3), pp. 241-254. ISSN 1466433X
Abstract
As a driving engine for growth, the construction industry plays an important role in a country's economic development process. Despite that, the industry is vulnerable to cyclical oscillation and at times more fundamental changes in work volume when the regional or global economy is hit by unforeseen events. In order to formulate appropriate policies and directions to help ease the impact of a fluctuating volume of construction work, a model that can reliably predict the work of various construction sectors after any economic turbulence would be extremely useful. In this study, the Box-Jenkins approach is used for model development due to its simplicity and sound theoretical background. The results illustrate that the Box-Jenkins models can reliably predict the medium-term total construction demand and residential demand covering a turbulent period of ups and downs in construction demand. A multiple regression model is also developed to compare against the modelling reliability of the Box-Jenkins model.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | box-jenkins technique; construction demand; economic environment; forecasting |
| Index terms: | model development, construction sector, turbulence, austerity, economic development, construction industry, modelling, construction work, Box-Jenkins, construction demand, forecasting, multiple regression model |
| Subjects: | market analysis, industry analysis, statistical analysis, economic development, operations management, economic analysis, prediction and forecasting, fluid mechanics, analytical methods |
| Topics: | Sustainability, Engineering Principles, Research Practice, Project Management |
| Descriptive scope: | 4 PCTA |
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