Misallocation: meaning, definitions and examples
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misallocation
[ ˌmɪsˌæləˈkeɪʃən ]
economic term
Misallocation refers to the inefficient distribution of resources, leading to suboptimal outcomes in terms of economic productivity and growth. It occurs when resources are allocated to activities that do not maximize their potential or where the costs outweigh the benefits.
Synonyms
inefficient distribution, misallocation of resources, suboptimal allocation
Examples of usage
- Government subsidies can often lead to misallocation of resources, as they distort market signals and encourage firms to produce goods that may not be in demand.
- Poorly designed regulations can also contribute to misallocation, as they create barriers to entry and hinder competition.
Translations
Translations of the word "misallocation" in other languages:
🇵🇹 má alocação
🇮🇳 गलत आवंटन
🇩🇪 Fehlverteilung
🇮🇩 alokasi yang salah
🇺🇦 неправильний розподіл
🇵🇱 niewłaściwe przydzielenie
🇯🇵 誤った割り当て
🇫🇷 mauvaise allocation
🇪🇸 asignación incorrecta
🇹🇷 yanlış tahsis
🇰🇷 잘못된 할당
🇸🇦 تخصيص خاطئ
🇨🇿 nesprávné přidělení
🇸🇰 nesprávne pridelenie
🇨🇳 错误分配
🇸🇮 napačna dodelitev
🇮🇸 röng úthlutun
🇰🇿 қате бөлу
🇬🇪 არასწორი განაწილება
🇦🇿 səhv bölgü
🇲🇽 asignación incorrecta
Word origin
The term misallocation has its roots in economics, where it is used to describe the allocation of resources in a way that does not lead to the most efficient outcomes. The concept of misallocation has been studied extensively in the field of economics, with researchers examining the causes and consequences of misallocating resources. By understanding how misallocation occurs and its impact on economic growth, policymakers can work towards creating more efficient and productive economies.