1. Software and operating system used: MATLAB above R2018a (MATLAB 9.4)


2. The order in which the programs need to run, expected computation time and which figures to generate by each program.

(2-1) Figure1.m, 5.93 secs, Figure 1: Equilibrium asset-owner density in Walrasian and OTC markets

(2-2) Figure2to6.m, 2.44 secs, 
Figure 2: Equilibrium solutions with cˆ = 0.5
Figure 3: Equilibrium solutions with cˆ = 2
Figure 4: Equilibrium solutions with cˆ = 10
Figure 5: Trading volumes in different markets
Figure 6: Correlation between centrality and intermediation profit per trade

(2-3) Figure7to8.m, 9.67 secs,
Figure 7: Competitive equilibrium and socially optimal search intensities
Figure 8: Competitive equilibrium and socially optimal densities

(2-4) Figure9.m, 0.58 secs,
Figure 9: Trader-level liquidity measures

(2-5) Figure10.m (in folder "Figure10"), 129.46 secs,
Figure 10: Socially optimal and competitive equilibrium search intensities for linear cost

(2-6) Figure11.m (in folder "Figure11"), 6.42 secs,
Figure 11: Densities before and after the aggregate liquidity shock (with π = 0.5)

(2-7) Figure12to13.m (in folder "Figure12to13"), 12.29 secs,
Figure 12: Dynamics of average buy and sell prices across traders for α = 0.25, cˆ = 1 and
η = 0.1
Figure 13: Dynamics of market liquidity for α = 0.25, cˆ = 1 and η = 0.1

(2-8) Figure14.m (in folder "Figure14"), 424.38 secs,
Figure 14: Cumulative changes in market liquidity (as percentage of old equilibrium level)
before new equilibrium

(2-9) Figure15to17.m, 1.91 secs,
Figure 15: Equilibrium solutions with α = 0.05
Figure 16: Equilibrium solutions with α = 0.25
Figure 17: Equilibrium solutions with α = 0.5

(2-10) Figure18.m (in folder "Figure18"), 5.29 secs,
Figure 18: Social Optimal and Competitive Equilibrium Solutions in Three Cases

(2-11) Figure19to20.m, 41.77 secs,
Figure 19: Dynamics of average buy and sell prices across all traders with Different Levels
of Search Frictions
Figure 20: Dynamics of market liquidity with Different Levels of Search Frictions

(2-12) Figure21to22.m, 39.49 secs,
Figure 21: Dynamics of average buy and sell prices across all traders with Different Refinancing Speed
Figure 22: Dynamics of market liquidity with Different Refinancing Speed

(2-13) Figure23.m (in folder "Figure23to24"), 1.14 secs,
Figure 23: Case 2: Social optimal search intensities and densities for concave cost function

(2-14) Figure24.m (in folder "Figure23to24"), 24.92 secs,
Figure 24: Case 3: Social optimal search intensities and densities for concave cost function

(2-15) Figure25.m (in folder "Figure25to26"), 0.61 secs,
Figure 25: Case 2: Social optimal search intensities and densities for convex cost function

(2-16) Figure26.m (in folder "Figure25to26"), 1.49 secs,
Figure 26: Case 3: Social optimal search intensities and densities for convex cost function

3 Other notes:

•The codes “Figure2to6.m” and “Figure15to17.m” produce the graphs WITHOUT the text arrows, e.g. the arrows with text “Core”, “Periphery”, “Centrality Discount”, “Centrality Premium”, etc. I manually added the text arrows.

•The file “Figure9.m” loads two .mat files: 'liquidity_ce.mat' and 'liquidity_so.mat'. These two mat files are generated correspondingly by code “Code1_DataGeneration_liquidity_ce.m” and “Code2_DataGeneration_liquidity_so.m”, in folder “Replication_codes/Codes_for_matdata_liquidity_ce_liquidity_so”.