Bob,
I doubt that a local contraction would give you Hubbles relation,
that is the fainter an object is (further away) the faster it is moving away
in a direct proportion. Your local contraction would have to be come global
and give us a very special place in the universe.
Godel point out you could get the red shift law from a rapidly
rotating universe, but such a universe quickly gets very un-physical, as well.
Gary
Gary Karshner
St. Mary's University
San Antonio, Texas
KARSHNER@STMARYTX.EDU