A Simple Proof of the Necessity of the Transversality Condition

Takashi Kamihigashi

No 116, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This note provides a simple proof of the necessity of the transversality condition for the differentiable reduced-form model. The proof uses only an elementary perturbation argument without relying on dynamic programming. The proof makes it clear that, contrary to common belief, the necessity of the transversality condition can be shown in a straightforward way.

Keywords: Programming; Dynamic Optimization; Models (search for similar items in EconPapers)
JEL-codes: C61 D90 G12 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp116.pdf First version, 2001 (application/pdf)

Related works:
Journal Article: A simple proof of the necessity of the transversality condition (2002)
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