Time Compression

David Aadland (aadland@uwyo.edu) and Sherrill Shaffer

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: 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.

JEL-codes: D03 D91 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2012-06
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Related works:
Working Paper: Time Compression (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2012-28

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