The transversality condition ensures intertemporal optimality in neoclassical growth models.
the verdict
SUPPORTED
the evidence backs this
confidence 84/100
The retrieved literature confirms that transversality conditions serve as key necessary or sufficient conditions to ensure intertemporal optimality in infinite-horizon neoclassical growth and optimal control models.
Evidence for · 3
Another view of the maximum principle for infinite-horizon optimal control problems in economics
2019 · cited by 25
The paper applies the maximum principle to Ramsey's optimal economic growth model, showing how transversality conditions characterize optimality at infinity.
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More for · 2
A Maximum Principle for Smooth Infinite Horizon Optimal Control Problems with State Constraints and with Terminal Constraints at Infinity
2015 · cited by 7
The paper establishes strong necessary conditions including transversality conditions at infinity for infinite-horizon optimal control problems.
A note on first-order and transversality conditions in infinite-horizon continuous-time optimal control models
2026 · cited by 0
The paper proves that under standard assumptions, optimal paths in infinite-horizon growth and consumption-saving models are fully characterized by first-order and transversality conditions.