  Using Hubble Space Telescope and ground-based U through K- band photometry
from the Great Observatories Origins Deep Survey (GOODS), we measure the
evolution of the luminosity function and luminosity density in the rest-frame
optical (UBR) to z ~ 2, bridging the poorly explored ``redshift desert''
between z~1 and z~2. We also use deep near-infrared observations to measure the
evolution in the rest-frame J-band to z~1. Compared to local measurements from
the SDSS, we find a brightening of the characteristic magnitude, (M*), by ~2.1,
\~0.8 and ~0.7 mag between z=0.1 and z=1.9, in U, B, and R bands, respectively.
The evolution of M* in the J-band is in the opposite sense, showing a dimming
between redshifts z=0.4 and z=0.9. This is consistent with a scenario in which
the mean star formation rate in galaxies was higher in the past, while the mean
stellar mass was lower, in qualitative agreement with hierarchical galaxy
formation models. We find that the shape of the luminosity function is strongly
dependent on spectral type and that there is strong evolution with redshift in
the relative contribution from the different spectral types to the luminosity
density.
  We find good agreement in the luminosity function derived from an R-selected
and a K-selected sample at z~1, suggesting that optically selected surveys of
similar depth (R < 24) are not missing a significant fraction of objects at
this redshift relative to a near-infrared-selected sample. We compare the
rest-frame B-band luminosity functions from z~0--2 with the predictions of a
semi-analytic hierarchical model of galaxy formation, and find qualitatively
good agreement. In particular, the model predicts at least as many optically
luminous galaxies at z~1--2 as are implied by our observations.
