mis·​al·​lo·​ca·​tion ˌmis-ˌa-lə-ˈkā-shən How to pronounce misallocation (audio)
plural misallocations
: 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 That is a bit too optimistic — even if later canceled, by causing market uncertainty and misallocation of capital in the interim, the announcement of the mandate is far from benign. Matthew Lau, National Review, 2 Jan. 2024 When job growth picks up in one region or drops off in another, workers born abroad are the first to respond, helping reduce regional misallocations in the U.S. labor supply. Gordon H. Hanson, Foreign Affairs, 19 Dec. 2022 The costs of the Federal Reserve’s zero-interest policy are multiplying: The misallocation of capital—goosing the price of the riskiest and least-productive of assets—set the conditions for boom and bust. Kevin Warsh, WSJ, 19 Mar. 2023 Its leadership has come under severe criticism from the bloc’s institutions, and it is being investigated by the E.U. anti-fraud agency, following allegations of harassment, misallocation of funds and misconduct that have led to a growing staff exodus. New York Times, 27 Jan. 2021 This means our amenities come with strings attached and harmful consequences, like misallocation of money or neglect of poorer communities. Jillian Steinhauer, The New Republic, 22 Aug. 2022 There is no such misallocation for the friend. Lesley Finn, Longreads, 7 July 2022 Such is the current level of crypto confusion and misallocation of resources across the VC world that many high-potential bitcoin startup valuations are under-priced, presenting an attractive opportunity for LPs looking to make a move into infrastructure investment. Kjartan Rist, Forbes, 6 July 2022 The strongest critiques of tenure highlight genuine if sometimes exaggerated problems, including the misallocation of faculty to underenrolled subjects or outdated specialties and delayed retirements that create a bottleneck to the advancement of young scholars. Samuel Goldman, The Week, 15 Oct. 2021 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'misallocation.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1916, in the meaning defined above

Time Traveler
The first known use of misallocation was in 1916

Dictionary Entries Near misallocation

Cite this Entry

“Misallocation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/misallocation. Accessed 21 Feb. 2024.

Last Updated: - Updated example sentences
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