R&D and subsidy policy with imperfect project classification
研究了企业在无法完美分类高风险研发项目时，最优补贴如何随企业减少两类错误的能力变化，以及相对于政府的信息优势如何影响补贴水平。
We characterize optimal subsidies for firms facing limitations in their ability to correctly classify risky R&D projects. We demonstrate that the optimal subsidy is an increasing function of firms’ ability to reduce type-I errors in accepting projects with a success potential, and a decreasing function in their type-II error of adopting projects with no success potential. Moreover, the optimal subsidy is decreasing in the informational advantage regarding the assessment of project viability of private firms relative to the government.