SSH, N 
KOOPMANS 
About the very interesting and remarkable condition 1, 1. Wa. 
indicated that it was a sufficient condition — is it also a necessery 
condition for the one member family of paths that satisfies the 
three recursive conditions to be an optimal path? Or if it isn’. 
is there any example of an optimal path that does not meet that 
rondition? 
MALINVAUD 
Yes, there is an example of an optimal path that would not meet 
that condition: in the case of the linear logarithmic model with 
epsilon equal to zero, condition I is not satisfied because the left- 
hand member of (23) is just equal 
KOOPMANS 
I have the impression, though, that in most cases this condition 
is just picking out that one path for which the recursive equations 
can hold for all times. Is it so that any path that does not meet 
condition 1 but satisfies the recursive requirements necessarily vio- 
lates at some finite time, the sign restrictions on capital or consump: 
tion? Or is that not correct? 
Malinvaud - pag. 79