Munich Personal RePEc Archive  Time Compression  Aadland, David
and Shaffer, Sherrill (2010): Time Compression.   Download
(1557Kb) | Preview   Economists have generally ignored the
notion that perceived time may differ from clock time. Borrowing
from the behavioral psychology literature, we investigate the
case of time compression whereby perceived time passes more
quickly than actual time. A framework is presented to embed time
compression in economic models. We then apply the principle to a
standard lifecycle permanent income model with endogenous labor.
Time compression provides an alternative explanation of why
older individuals, even those without declining labor
productivity, may choose to reduce their work effort.  MPRA is a
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