scholarly journals Solvability in infinite horizon optimization

2015 ◽  
Vol 43 (5) ◽  
pp. 498-503 ◽  
Author(s):  
Timothy D. Lortz ◽  
Irina S. Dolinskaya ◽  
Archis Ghate ◽  
Robert L. Smith
Keyword(s):  
Infinite Horizon ◽  
Infinite Horizon Optimization

scholarly journals A Tie-Breaking Rule for Discrete Infinite Horizon Optimization

1992 ◽  
Vol 40 (1-supplement-1) ◽  
pp. S117-S126 ◽  
Author(s):  
Sarah M. Ryan ◽  
James C. Bean ◽  
Robert L. Smith
Keyword(s):  
Infinite Horizon ◽  
Infinite Horizon Optimization

NECESSARY AND SUFFICIENT CONDITIONS FOR DYNAMIC OPTIMIZATION

2014 ◽  
Vol 20 (3) ◽  
pp. 667-684 ◽  
Author(s):  
A. Kerem Coşar ◽  
Edward J. Green
Keyword(s):  
Optimization Problems ◽  
Infinite Horizon ◽  
Sufficient Conditions ◽  
Transversality Condition ◽  
Necessary And Sufficient Conditions ◽  
Infinite Horizon Optimization ◽  
Sufficient Conditions For Optimality ◽  
The Government ◽  
Duality Approach ◽  
Necessary And Sufficient

We characterize the necessary and sufficient conditions for optimality in discrete-time, infinite-horizon optimization problems with a state space of finite or infinite dimension. It is well known that the challenging task in this problem is to prove the necessity of the transversality condition. To do this, we follow a duality approach in an abstract linear space. Our proof resembles that of Kamihigashi (2003), but does not explicitly use results from real analysis. As an application, we formalize Sims's argument that the no-Ponzi constraint on the government budget follows from the necessity of the tranversality condition for optimal consumption.

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