9730655 Jovanovic The objective of this project is to construct the first models in which the following features arise: (a) Growth and cycles are endogenous, (b) They are driven by innovation, (c) The number of inventions is large, (d) There are no "big" inventions, and (e) Growth and its variance can be negatively correlated. These new models integrate the business-cycle half of macroeconomics with the growth theory half. They provide a rigorous way of studying the dynamics of business cycles and economic growth that is more consistent with the U.S. experience. This project should provide valuable new insights into the growth process and its variability. ??
