Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Introducing the granular hypothesis, Gabaix (2011) shows that the idiosyncratic shocks of a few “granular” firms account for a significant fraction of aggregate fluctuations of the US business cycle. In the literature, however, the question of how many are the granular firms in an economy is left unanswered. Using Spanish data, in this paper we propose a novel methodology to calibrate the granular size of the economy, i.e. the number of granular firms.