A simple proof of the necessity of the transversality condition

B-Tier
Journal: Economic Theory
Year: 2002
Volume: 20
Issue: 2
Pages: 427-433

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:spr:joecth:v:20:y:2002:i:2:p:427-433
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25