In entrepreneurial decisions making uncertain future prots often are a maincharacteristics of real investment … prot taxation and realoptions. We model an investment decision including an option to invest andan option to abandon. We … investinto a capitalized investment.[...] …

Using a ¯rm-level panel data set I assess whether dynamic models of in-vestment provide an empirically fruitful … not been considered in previous studies on investment even though most(if not all) panel data sets on ¯rms are incomplete …

The influence of capital gains taxes on investment decisions is a central issue of accounting and public finance … interdependencies of investment and divestment decisions have to be identified, especially under timing flexibility. This paper closes … this gap by simultaneously analyzing investment timing and abandonment decisions for risky irreversible investment projects …