transversality condition

noun

A terminal condition on a costate variable in a, usually infinite, time optimization problem.

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Meanings

nountransversality condition (plural transversality conditions)

plural transversality conditions

  1. economicsA terminal condition on a costate variable in a, usually infinite, time optimization problem.

Origin

To quote from Optimization in economics and finance : 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).

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Cite this entry
APA

transversality condition. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/transversality%20condition

MLA

“transversality condition.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/transversality%20condition. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “transversality condition,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/transversality%20condition.

Source: transversality condition on Wiktionary, CC BY-SA 4.0.