Transversality condition and optimality in a class of infinite horizon continuous time economic models
分析一类由Kamien和Schwartz提出的无限时域连续时间经济模型，指出文献中假设横截条件为最优性必要条件的解法缺乏依据，并提供了全新的求解方法。
This paper analyzes a class of widely used infinite horizon continuous time economic models first formulated by Kamien and Schwartz. It is shown that the method of solution for this class of models offered in the literature is unwarranted because it assumes that the transversality condition is a necessary optimality condition. Further investigations reveal that the existing results in the literature do not offer a satisfactory justification for the necessity of the transversality condition. This paper provides an entirely different approach to solve the problem.