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Fire Sales, Foreign Entry and Bank Liquidity

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Figure

Figure 1: Timeline of the benchmark model.
Figure 2: Price in Proposition 1.
Figure 4: Privately optimal choice of liquidity and the equilibrium (Proposition 2). lˆlˆ l0l*lmax1
Figure 6: Liquidity ratio and its Fitted value vs Accounting standards 0102030405060708090100 20 30 40 50 60 70 80 Accounting standardsLiquidity ratio Liquidity ratio Fitted Liquidity ratio
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