Having children is like investing in a risky project. Postponing birth delaying an irreversible investment. It has option value, which depends on its costs and benefits, particular the additional risks motherhood brings. We develop parsimonious theory of childbearing postponement along these lines. derive implications for asset accumulation, income, optimal age at first birth, childlessness. Th...

This paper resolves the conceptual ambiguity of real option value and derives a model using risk-adjusted discount rates that can be applied to value the option to invest in a project. The approach adopts stochastic revenue and costs which provide a general solution with the added virtue of applicability. We found the option value arises from the difference between an individual investor and th...