Rahn curve

Summary

The Rahn curve is a graph used to illustrate an economic theory, proposed in 1996 by American economist Richard W. Rahn, which suggests that there is a level of government spending that maximizes 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]

Rahn Curve

See also edit

References edit

  1. ^ Rahn, Richard; Fox, H (1996), What Is the Optimal Size of Government (PDF), ime.bg, archived from the original (PDF) on 2016-03-04
  2. ^ The Rahn Curve and the Growth-Maximizing Level of Government, Center for Freedom and Prosperity, June 29, 2010. with subtitles, dotsub.com
  • Pettinger, Tejvan: The Rahn Curve – Economic Growth and Level of Spending, economicshelp.org, April 23, 2008.

External links edit

  • search "Rahn", freedomandprosperity.org