Rahn_curve

Rahn curve

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]

Rahn Curve

See also


References

  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

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