Purpose – The purpose of this paper is to test whether entrepreneurship is a significant factor in explaining economic growth at the state level. Design/methodology/approach – This paper, unlike previous work, uses the Kauffman Index of Entrepreneurial Activity (KIEA) as the measure of...

When money is added to a dynamic IS model, evidence from six countries indicates that money growth usually helps predict the GDP gap and that the predictive power of a short-term real interest is much weaker than previous work suggests. Thus, for dynamic IS models such as that used by Rudebusch,...