Business Cycles

  • Jerry CourvisanosEmail author
Living reference work entry



The first rigorous attempt to link the innovation role of the “pioneering entrepreneur” with the boom and bust of business cycles was by Joseph Schumpeter in his two-volume Business Cycles (Schumpeter 1939). This linkage is fraught with danger as it attempts to examine innovative entrepreneurship – which occurs at the individual firm level – with the aggregate pattern on economic cycles at an economy-wide level. Much has been researched and written since then in an effort to overcome the pitfalls of this dilemma, while preserving the dynamic power of an endogenous entrepreneurial-driven cyclical process. This entry will examine the various mechanisms that have been proposed on how the action of innovative entrepreneurs can lead to prosperity and recession. The analysis begins with a first “simple” approximation of the dynamics of entrepreneurs and cycles and builds dynamic complexity with further...


Gross Domestic Product Business Cycle Capital Stock Basic Innovation Incremental Innovation 
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Copyright information

© Springer Science+Business Media LLC 2017

Authors and Affiliations

  1. 1.Federation Business SchoolFederation University AustraliaMt Helen Campus, BallaratAustralia

Section editors and affiliations

  • Evangelos (Vangelis) Grigoroudis
    • 1
  1. 1.Decision Support Systems Laboratory, School of Production Engineering and ManagementTechnical University of CreteChaniaGreece