An Infinite-Horizon Maximum Principle with Bounds on the Adjoint Variable
We provide necessary optimality conditions for a general class of discounted infinite-horizon dynamic optimization problems. As part of the resulting maximum principle we obtain explicit bounds on the adjoint variable, stronger than the transversality conditions in Arrow–Kurz form.
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Weber, T. A. (2006). An Infinite-Horizon Maximum Principle with Bounds on the Adjoint Variable. Journal of Economic Dynamics and Control, 30(2), 229–241. https://doi.org/10.1016/j.jedc.2004.11.006
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