12-vol. 6, no. 2, july-december, 1991
Articles

An expositional note on the transversality condition in continuous time dynamic economic models

Marcelo Bianconi
Tufts University

Published 1991-07-01

Keywords

  • neoclassical growth model

How to Cite

Bianconi, M. (1991). An expositional note on the transversality condition in continuous time dynamic economic models. Estudios Económicos De El Colegio De México, 6(2), 287–297. https://doi.org/10.24201/ee.v6i2.308

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Abstract

This is an expositional note on the transversality condition in continuous time dynamic economic models. We illustrate the basic issues, using the neoclassical one-sector optimal growth asset pricing model. In this class of models, the transversality condition is the natural link tying the present to the distant future.

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