Diversification as a Strategy for Minimising Fluctuations in Construction Firm Turnovers
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Construction firms frequently complain of the volatility of demand in their markets with periods of boom followed by slumps. In a number of countries, the stabilisation of construction demand through more sensitive macroeconomic policies is often on the policy agenda of construction industry lobbies. In this chapter, we wish to explore the empirical validity of the claim that construction markets are exceptionally unstable by examining the evidence from one of the most volatile major construction markets in Europe, that of Great Britain, and, in addition, to explore some potential firm strategies towards market volatility.
KeywordsHousing Market Total Order Private Housing Output Volatility Construction Market
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