What Is a Forecast for?

Problem, research strategy, and findings: The forecasts transit agencies submit in support of applications for federal New Starts funding have historically overestimated ridership, as have ridership forecasts for rail projects in several countries and contexts. Forecast accuracy for New Starts projects has improved over time. Understanding the motivations of forecasters to produce accurate or biased forecasts can help forecast users determine whether to trust new forecasts. For this study I interviewed 13 transit professionals who have helped prepare or evaluate applications for federal New Starts funds. This sample includes interviewees who have had varying levels of involvement in all 82 New Starts projects that opened between 1976 and 2016. I recruited interviewees through a snowball sampling method; my interviews focus on the interviewees’ perspectives on how New Starts project evaluation and ridership forecasting has changed over time. Interview results suggest that ridership forecasters’ motivations to produce accurate forecasts may have increased with increased transparency, increased influence on local decision making, and decreased influence on external (federal) funding.

Takeaway for practice: Planners can evaluate the likely trustworthiness of forecasts based on transparency, internal influence, and external influence. If forecast users cannot easily determine a forecast’s key inputs and assumptions, if the forecaster has been tasked with producing a forecast to justify a predetermined action, and if an unfavorable forecast would circumvent decisions by the forecaster’s immediate client, forecasts should viewed with skepticism. Planners should seek to alter conditions that may create these conflicts of interest. Forecasters seem to be willing and able to improve forecast accuracy when the demand for accurate forecasts increases.