Rahn curve
Graph of economic growth theory
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]
See also
- Government spending
- Laffer curve
- Tax cut
References
- ^ Rahn, Richard; Fox, H (1996), What Is the Optimal Size of Government (PDF), ime.bg, archived from the original (PDF) on 2016-03-04
- ^ 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
- search "Rahn", freedomandprosperity.org
