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...

For many environmental problems regulators are uncertain about both the costs of abatement and the stock-related damages. For example, governments have imperfect information about damages caused by greenhouse gas stocks, and also about the costs of abating greenhouse gas emissions. They acquire...

Ekeland and Scheinkman (1986) prove the necessity of a standard transversality condition under certain technical conditions. Their result is one of the most powerful on the necessity of a transversality condition currently available in the literature, and their proof involves numerous...

Zusammenfassung Mit dem neuen Kreislaufwirtschaftsgesetz, das auf die Produktverantwortung von Produzenten und die Schließung von Stoffkreisläufen abstellt, nimmt die Bedeutung von Rücknahmeverpflichtungen als abfallwirtschaftliches Instrument zu. In der vorliegenden Arbeit wird der...

We develop a turnpike theory for a class of dynamic general equilibrium models where total demand function satisfy monotonicity conditions. As special cases, we receive well known results about asymptotic behavior of optimal paths.