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.
- ^Richard Rahn and H. Fox: What Is the Optimal Size of Government Archived 2016-03-04 at the Wayback Machine, ime.bg, 1996.
- ^The Rahn Curve and the Growth-Maximizing Level of Government, video by Center for Freedom and Prosperity, freedomandprosperity.org; June 29, 2010. with subtitles, dotsub.com.