Abstract
This note offers a new proof of the necessary conditions for fixed endpoint optimal control. Our approach simplifies the conventional derivation of the necessary conditions by using a transversality condition to ensure feasibility of modifications to the optimal path. We further prove that this transversality condition holds automatically at the optimum and can therefore be ignored in the statement of the necessary conditions.
Original language | English |
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Pages (from-to) | 1007-1012 |
Number of pages | 6 |
Journal | Economic Theory |
Volume | 26 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2005 |
Externally published | Yes |
Keywords
- Fixed endpoint
- Necessary conditions
- Optimal control