The Rahn curve is an economic theory, developed by Richard Rahn, which proposes that there is a level of government spending which maximises economic growth. The theory is used by classical liberals to argue for a decrease in overall government spending and taxation. The curve suggests the optimal level of government spending is 15–25% of GDP.

External links

• http://www.economicshelp.org/blog/economics/the-rahn-curve-economic-growth-and-level-of-spending/
• The Rahn Curve and the Growth-Maximizing Level of Government