This paper studies the effects of redistributive taxation in credit markets with adverse selection and shows that there exists a range of taxes that creates Pareto improvements relative to the (zero-tax) market allocation by increasing aggregate investment. For sufficiently high taxes, an increase in the safe interest rate can be accompanied by an increase in investment.
DOSIS, A. (2019). The Effects of Redistributive Taxation in Credit Markets with Adverse Selection. Economics Letters, 184.