Mathematics for Economists

Optimal control and calculus of variation

Also by the condition on maximality byuat the optimal solution for every

t

0 Hu^00 ,u=Fu^00 ,u=Fx^00 ,u



t,x(t),x(t)



.

This is the so-called Legrende condition. One should remark that

unfortunately the conditionFx^00 ,u<0 is also just a necessary and not a

su¢ cient condition.