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The Rahn curve is a graph used to illustrate an economic theory, proposed in 1996 by American economist Richard W. Rahn, which indicates that there is a level of government spending that maximises 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.(dead link)
- Pettinger, Tejvan: The Rahn Curve – Economic Growth and Level of Spending, economicshelp.org, April 23, 2008.
- search "Rahn", freedomandprosperity.org
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