@techreport{NBERw13584,
 title = "Real Options in a Dynamic Agency Model, with Applications to Financial Development, IPOs, and Business Risk",
 author = "Thomas Philippon and Yuliy Sannikov",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13584",
 year = "2007",
 month = "November",
 URL = "http://www.nber.org/papers/w13584",
 abstract = {We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics, in particular the decline of the failure rate and the decrease in the age of IPOs.},
}