transversality condition
Definition from Wiktionary, the free dictionary
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[edit] English
[edit] Etymology
To quote from Optimization in economics and finance [1]
- This terminal condition on λ(T) has often been called a transversality condition, for historical reasons deriving from time-optimal problems, where the (variable) time T to reach a target is minimized. In that situation, the transversality condition appears as a description of how the optimal path crosses a terminal line (graphing state against T[)]
[edit] Noun
transversality condition (plural transversality conditions)
- (economics) A terminal condition on a costate variable in a, usually infinite, time optimization problem.
[edit] References
- ^ 2005, Bruce Desmond Craven, Sardar M. N. Islam, Optimization in economics and finance:
