This is an output of the Acropolis BeFinD project. The ‘Belgian Policy Research group on Financing for Development’ (BeFinD) is a collaboration between the University of Namur (CRED), the KU Leuven (HIVA and CGGS) and the University of Antwerp (IOB) in the framework of the VLIR-UOS and...

Multi-staged R&D projects are copy-book cases of compound real options. Traditional compound option models assume a constant volatility over the lifetime of the project. Building on the n-fold compound option model of Cassimon et al. (2004), we extend this model to allow for phase-specific...

This paper applies an alternative model to analyze criminal behaviour by countries based on real option models. Criminal options incorporate a richer framework than traditional cost-benefit models and allow examining the optimal timing of a crime as criminals have the possibility but not the...

Developing countries have recently proved reluctant to participate in sovereign debt moratoria and debt relief initiatives. We argue that debtors' (non-)participation decisions can be understood through the lens of real options. Eligible countries compare the net benefits of participating in a...