<p>For a finite-horizon discrete time optimization problem, my textbook provides a condition called the "bequest condition", which I'm not familiar with. Specifically, where the state at time <span class="math-container">$t$</span> is denoted <span class="math-container">$x_t$</span>, the bequest condition states that at the final state, <span class="math-container">$x_T$</span>, it must hold that <span class="math-container">$x_T\geq \bar x$</span>. What does this mean?</p>

<mathematical-economics><optimization><dynamic-optimization>
What is the "bequest condition" in a finite-horizon discrete optimization problem?
David
# What is the "bequest condition" in a finite-horizon discrete optimization problem?

(Asked by: username_0 on 2018-12-09)

For a finite-horizon discrete time optimization problem, my textbook provides a condition called the "bequest condition", which I'm not familiar with. Specifically, where the state at time $t$ is denoted $x\_t$, the bequest condition states that at the final state, $x\_T$, it must hold that $x\_T\geq \bar x$. What does this mean?

**Tags:** mathematical-economics, optimization, dynamic-optimization


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