An econometric forecasting model of revenues from urban parking facilities

Abstract

This article develops an econometric forecasting model for the revenues of a business firm. The model is estimated from the revenues of two parking facilities in Kansas City. Parking revenues are a function of local economic activity, seasonal factors, and facility-specific events. We obtain a close fit to the observed revenues of each facility. Our analysis can make long-term forecasts directly or augment an ARIMA model for more accurate short-term forecasts. Because it uses data that appear to be widely available, the analysis may be applicable to forecasting and valuation projects for a variety of retail businesses.