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.

MoreLess

Year of publication:	2010-04
Authors:	Cai, Dapeng ; Nitta, Takashi Gyoshin
Institutions:	arXiv.org

More details

Extent:	application/pdf
Series:	Papers.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008622240