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Rahn curve
The Rahn curve is 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 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 ), 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.〕 == Links ==
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