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Definition 2024


transversality_condition

transversality condition

English

Noun

transversality condition (plural transversality conditions)

  1. (economics) A terminal condition on a costate variable in a, usually infinite, time optimization problem.

References

  1. Bruce Desmond Craven, Sardar M. N. Islam (2005) Optimization in economics and finance, ISBN 0387242791, page 132