A Simple Proof of the Necessity of the Transversality Condition

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

MoreLess

Year of publication:	2001
Authors:	Kamihigashi, Takashi
Publisher:	[S.l.] : SSRN

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

More details
Report error

Extent:	1 Online-Ressource (9 p)
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.269835 [DOI]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D90 - Intertemporal Choice and Growth. General ; G12 - Asset Pricing
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014131312