Why do some countries join the EU earlier than others, why do others wait? In order to answer this question we apply the theory of investment under uncertainty (Dixit and Pindyck, 1994) to the decision on EU-membership. We develop a simplified model of two periods to study how the value of...

Why do some countries join the EU earlier than others, why do others wait? Inorder to answer this question we apply the theory of investment under uncertainty (Dixit andPindyck, 1994) to the decision on EU-membership. We develop a simplified model of twoperiods to study how the value of waiting...