Aadland, David and Shaffer, Sherrill (2010): Time Compression.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Time Compression|
|Keywords:||Time Compression; Discounting; Lifecycle Permanent Income Model; Retirement|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Economics; Underlying Principles
D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
|Depositing User:||David Aadland|
|Date Deposited:||09. Mar 2011 07:52|
|Last Modified:||13. Feb 2013 06:55|