# transversality condition

> English word · Noun

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

## Etymology
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).

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/transversality-condition