Can an individual large firm impact the U.S. business cycle?

Chen Yeh in this Richmond Fed economic brief:

Recent research has emphasized the importance of a few large firms in driving overall economic fluctuations, a view known as the “granular hypothesis.” I find that the granular hypothesis can explain about 15 percent of aggregate U.S. fluctuations, a smaller share than found in other research. Thus, the granular hypothesis plays a meaningful role for the U.S. economy, but there is still plenty of room for aggregate factors to be relevant.

15% is quite large.

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