A Structural Model For Corporate Profit In The U.S. Industry

The author estimates 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. 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.