Rahn curve

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Rahn Curve

The Rahn curve is a graph used to illustrate an economic theory, proposed in 1996 by American economist Richard W. Rahn, which indicates that there is a level of government spending that maximises economic growth. The theory is used by classical liberals to argue for a decrease in overall government spending and taxation. The inverted-U-shaped curve suggests that the optimal level of government spending is 15–25% of GDP.[1][2]

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  1. ^ Richard Rahn and H. Fox: What Is the Optimal Size of Government, ime.bg, 1996.
  2. ^ The Rahn Curve and the Growth-Maximizing Level of Government, video by Center for Freedom and Prosperity, freedomandprosperity.org; June 29, 2010. with subtitles, dotsub.com.

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