Sunspot Theory

Discipline: Economics

Advanced by English economist WILLIAM JEVONS (1835-1882), sunspot theory is a trade cycle theory stating that trade is linked to the regular occurrence of solar flares, or spots, which affect the earth's climate and agricultural output.

Critics, while acknowledging the cyclical nature of the sunspot activity and that of agricultural production, view the theory as unduly simplistic. Consequently, it has little validity today.

Also see: Heckscher-Ohlin trade theory, technological gap theory

Source:
W S Jevons, Investigations in Currency and Finance (London, 1884)

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