mis·​al·​lo·​ca·​tion | \ ˌmis-ˌa-lə-ˈkā-shən How to pronounce misallocation (audio) \
plural misallocations

Definition of misallocation

: the act or an instance of misallocating something (such as money or resources) : poor or improper allocation misallocation of tax dollars And there are many who would say that any interference with a free market system … inevitably results in misallocations of resources just because planners cannot be omniscient.— R. Weiss et al.

Examples of misallocation in a Sentence

Recent Examples on the Web This biofuel profit premium is driving the sort of capital misallocation that the World Bank noted last week in a report on economic growth and inflation. The Editorial Board, WSJ, 15 June 2022 Conversations held after mass shootings typically tend to focus on background checks, but, given that mass shooters almost always pass those checks, this represents a chronic misallocation of effort. The Editors, National Review, 27 May 2022 The improper figures resulted in a misallocation of $9.8 million in state and local funding throughout 2016 to 2021. Lillian Reed, Baltimore Sun, 21 Apr. 2022 But forcing insurance companies to pay up to 20 times the retail rate for tests creates a sizable moral hazard problem and misallocation of resources that should not be ignored. Cameron Kaplan, WSJ, 3 Feb. 2022 In the meantime, reorganizing energy supplies around technologies that are not yet ready for primetime continues to be a massive misallocation of capital, with consequences that are bad for consumers, business, and our geopolitical interests. Andrew Stuttaford, National Review, 27 Feb. 2022 With the passage of Obamacare, the misallocation got even worse. John C. Goodman, Forbes, 23 Dec. 2021 More important, though, this misallocation of resources will hurt everyday Americans who buy stocks such as Nikola. Sean-michael Pigeon, National Review, 2 Aug. 2021 Thirteen percent of recall proponents cited business closures as their motivation; 12 percent cited the misallocation of state unemployment payments; and 10 percent said Newsom’s attendance at a party during the lockdown cinched their recall vote. Jeff Mcdonald, San Diego Union-Tribune, 4 Aug. 2021 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'misallocation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of misallocation

1916, in the meaning defined above

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The first known use of misallocation was in 1916

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Last Updated

17 Jul 2022

Cite this Entry

“Misallocation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/misallocation. Accessed 13 Aug. 2022.

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