442 research outputs found
Transversality Conditions for Higher Order Infinite Horizon Discrete Time Optimization Problems
In this paper, we examine higher order difference problems. Using the
"squeezing" argument, we derive both Euler's condition and the transversality
condition. In order to derive the two conditions, two needed assumptions are
identified. A counterexample, in which the transversality condition is not
satisfied without the two assumptions, is also presented
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