Fig. 13

Capital requirements for core and periphery banks as a function of fire sales (varying ρ and fixed γ=0.2) a separately and b together with different levels of bankruptcy costs (varying β and fixed α=1)
Capital requirements for core and periphery banks as a function of fire sales (varying ρ and fixed γ=0.2) a separately and b together with different levels of bankruptcy costs (varying β and fixed α=1)