Rahn curve

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

Links

References

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.

See also

• Government spending
• Laffer curve
• Tax cut

External links

• Pettinger, Tejvan: The Rahn Curve – Economic Growth and Level of Spending, economicshelp.org, April 23, 2008.
• search "Rahn", freedomandprosperity.org