REFERENCES Anderson, J.E., 1993. Use-value Property Tax Assessment: Effects on Land Development. Land Economics, 69, pp. 263-269. Anghelache, G.V. Cozmanca, B.O. and Radu, A.N., 2011. Operational Risk Modelling and Capital Adequacy: Are There any Rewards in Greater Complexity?. Romanian Journal of Economic Forecasting, 14(3), pp. 108-131. Arnott, R.J. and Lewis, F.D., 1979. The Transition of Land to Urban Use. Journal of Political Economics, 87, pp. 161-169. Buttimer, R.J. Clark, S.P. and Ott, S.H., 2008. Land Development: Risk, Return and Risk Management. Journal of Real Estate Finance and Economics, 36, pp. 81-102. Bulan, L. Mayer, C. and Somerville, T., 2009. Irreversible Investment, Real Options, and Competition: Evidence from Real Estate Development. Journal of Urban Economics, 65, pp. 237-251. Brennan, M.J. and Schwartz, E.S., 1985. Evaluating Natural Resource Investments. Journal of Business, 58, pp. 135-157. Capozza, D.R. and Helsley, R.W., 1990. The Stochastic City. Journal of Urban Economics, 28, pp. 187-203. Capozza, D.R. and Li, Y., 1994. The Intensity and Timing of Development: The Case of Land. American Economic Review, 84, pp. 889-904. Capozza, D.R., and Li, Y., 2001. Residential Investment and Interest Rate: An Empirical Test of Land Development as a Real Option. Real Estate Economics, 29, pp. 503-519. Chan, SH., Wang, K. and Yang, J., 2012. Presale Contract and Its Embedded Default and Abandonment Options. Journal of Real Estate Finance and Economics, 44, pp. 116-152. Geske, R., 1977. The Valuation of Corporate Liabilities as Compound Options. Journal of Financial and Quantitative Analysis, 12, pp. 541-552. Geske, R., 1979. The Valuation of Compound Options. Journal of Financial Economics, 7, pp. 63-81. Grenadier, S.R., 1995. Valuing Lease Contracts: A Real-options Approach. Journal of Financial Economics, 38, pp. 297-331. Grenadier, S.R., 1996. The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets. Journal of Finance, 51, pp. 1653-167. Jou, J.B. and Lee, T., 2008. Taxation on Land Value Development When There are Negative Externalities from Development. Journal of Real Estate Finance and Economics, 36, pp.103-120. Lai, N. Wang, K. and Zhou, Y., 2004. Sale before Completion of Development: Pricing and Strategy. Real Estate Economics, 32, pp. 329-357. Lajeri-Chaherli, F., 2002. A Note on the Valuation of Compound Options. Journal of Futures Markets, 22, pp.1103-1115. Lee, M.Y. Yeh, F.B. and Chen, A.P., 2008. The Generalized Sequential Compound Options Pricing and Sensitivity Analysis. Mathematical Social Sciences, 55, pp. 38-54. Lupu, R., 2006. Option Bounds for Multinomial Stock Returns in Jump-diffusion Processes: A Monte Carlo Simulation for a Multi-jump Process. Romanian Journal of Economic Forecasting, 7(2), pp. 58-71. McFarlane, A., 1999. Taxes, Fees, and Urban Development. Journal of Urban Economics, 46, pp. 416-436. Moel, A. and Tufano, P., 2002. When are Real Options Exercised? An Empirical Study of Mine Closings. Review of Financial Studies, 15, pp. 35-64. Parthasarathy, K.V. and Madhumathi, R., 2010. Real Options Analysis in Valuation of Commercial Project: A Case Study. IUP Journal of Infrastructure, 8, pp. 7-25. Quigg, L., 1993. Empirical Testing of Real Option-pricing Models. Journal of Finance, 48, pp. 621-640. Scholes, M., 1976. Taxes and the pricing of options. Journal of Finance, 31, pp. 319-332. Titman, S., 1985. Urban Land Prices under Uncertainty. American Economic Review, 75, pp. 505-514. Wang, K. and Zhou, Y., 2006. Equilibrium Real Options Exercise Strategies with Multiple Players: The Case of Real Estate Markets. Real Estate Economics, 34, pp. 1–49. Williams, J.T., 1993. Equilibrium and Options on Real assets. Review of Financial. Studies, 6, pp. 825-850. Williams, J.T., 1997. Redevelopment of Real Assets. Real Estate Economics, 25, pp. 387–407.