We show that our general result Withagen and Asheim (1998) on the converse of Hartwick’s rule also applies for the special case of Solow’s model with one capital good and one exhaustible resource. Hence, the criticism by Cairns and Yang (2000) of our paper is unfounded.
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References
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Withagen, C., Asheim, G.B., Buchholz, W. (2007). On the Sustainable Program in Solow's Model. In: Justifying, Characterizing and Indicating Sustainability. Sustainability, Economics, and Natural Resources, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-6200-1_12
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