Title

A Note on Transversality Conditions

Abstract

We derive a new transversality condition (which we prove to be necessary) for a class of infinite horizon optimal control problems.

JEL Classification: C61
KeyWords: Transversality condition, optimal control theory

Ngo Van LONG
Department of Economics, McGill University

Koji SHIMOMURA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059