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 …

-up with exploration-exploitation trade-offs in the presence of time compression costs. We consider a joint … encourage the local firm to stay longer. We show that a fall in time compression costs may increase or decrease the intensity of … technology transfer, both in the first-best and in the second-best scenarios, depending on the nature of the saving in time-compression …