Readme.txt
1. Title of paper: ?Default, Bailouts and the Vertical Structure of Financial Intermediaries, 

2. Manuscript number: Ms. No. RED_2018_105R3
3. Name of all authors: Tatiana Damjanovic, Vladislav Damjanovic and Charles Nolan.
4. Name of RED editor in charge: Vincenzo Quadrini
5. readme.txt file describing all other files and how to run them. In particular, needs to include:
1. Software and operating system used: Matlab for Windows, Windows 10 
2. The order in which the programs need to run



3. Expected computation time
4. If random numbers are used, the seed needs to be specified, as well as the random number generator.


TABLES
Table 1 is produced in Table1.m  		Elapsed time is 28.543770 seconds.
Table 2 is produced in Table2_unlim.m	Elapsed time is 54.440369 seconds.
Table 3 is computed in:
      Table3_high_g.m, 			Elapsed time is 27.686792 seconds.
      Table3_high_taug.m  			Elapsed time is 28.118205 seconds.
      Table3_low_taug.m			Elapsed time is 28.103484 seconds
       
Table 4 is computed in 
Table4_ideo.m (for high idiosyncratic volatility) 	Elapsed time is 27.905833 seconds.
Table4_sys.m (for high systemic volatility).	Elapsed time is 28.350321 seconds.

Table 5 is computed in 
       Table5_2_optimal.m (compute outcome of optimal policy in bench mark economies), 
       Table5_3_high_tau_g.m (optimal policy when government monitoring is costly) and 
       Table5_4_high_volatility.m (optimal policy when systemic shock volatility is large)
        (computing time is long, about 20 minutes for each column of Table 5)

Figures
Figure 2 is produced in Figure2_final.m		Elapsed time is 91.573450 seconds.	
Figure 3 is produced in Fig3_IRFS_TFP.m		Elapsed time is 1.622529 seconds.
Figure 4 is produced in Fig4_U_distr.m		Elapsed time is 1.774193 seconds.
All mentioned here files are independent and can be run in any order. All the other files are functions which are useful and should not be deleted from the folder.