Transversality Conditions for Higher Order Infinite Horizon Discrete Time Optimization Problems
AbstractIn 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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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1004.3093.
Date of creation: Apr 2010
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Web page: http://arxiv.org/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
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