Rahn curve
{{Short description|Graph of economic growth theory}}
{{Refimprove|date=July 2010}}
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.{{Citation |first1=Richard |last1=Rahn |first2=H |last2= Fox |url=http://ime.bg/uploads/335309_OptimalSizeOfGovernment.pdf |title=What Is the Optimal Size of Government |archive-url=https://web.archive.org/web/20160304064752/http://ime.bg/uploads/335309_OptimalSizeOfGovernment.pdf |archive-date=2016-03-04 |publisher=ime.bg |date=1996}}{{Citation |url=http://freedomandprosperity.org/2010/videos/the-rahn-curve-and-the-growth-maximizing-level-of-government/ |title=The Rahn Curve and the Growth-Maximizing Level of Government |publisher= Center for Freedom and Prosperity |date= June 29, 2010}}. [http://dotsub.com/view/cc796c8a-2966-4e9c-b931-f1618468833f with subtitles], dotsub.com
See also
References
{{reflist}}
- Pettinger, Tejvan: [http://www.economicshelp.org/blog/economics/the-rahn-curve-economic-growth-and-level-of-spending/ The Rahn Curve – Economic Growth and Level of Spending], economicshelp.org, April 23, 2008.
External links
- [http://freedomandprosperity.org/?s=Rahn search "Rahn"], freedomandprosperity.org