Factor No Variable Var Frequency Source Notes
Construction insolvency 01 Company insolvency C Quarterly Department of Trade and Industry  
Profitability 02 Return on capital invested P Annually Derived from UK National Accounts  
Cash flow problems 03 Working capital requirements W Annually UK National Accounts  
Cash flow problems 04 Bank borrowing by UK construction F Quarterly Financial Statistics  
Domino theory 05 Overall insolvency statistics Lt-4 Quarterly Department of Trade and Industry Lagged four quarters
Credit availability 06 Velocity of circulation of money V Quarterly Financial Statistics Relevant prior to 1980
Cost of credit 07 Interest rate R Periodic changes Economic Trends Relevant from 1980
Fluctuating demand 08 Change in construction output DQ Quarterly Housing and Construction Statistics  

Table No 3: Variables used in statistical tests