The phrase "allocative inefficiency" is correct and usable in written English.
It is typically used in economics to describe a situation where resources are not allocated in a way that maximizes total welfare or utility.
Example: "The market is experiencing allocative inefficiency, leading to a misallocation of resources that could otherwise benefit consumers."
Alternatives: "resource misallocation" or "inefficient allocation of resources".
We characterize the structure of optimal assignment rules when both allocative inefficiency and expenditure inefficiency (e.g., rent-seeking) are present.
Economists do not yet have a good answer as to why start-ups and surviving young companies are creating fewer jobs, but it may have something to do with "allocative inefficiency".
Next, while outputs continued to grow at about their historical rate across LECs, the sizeable increase in the two types of capital increased inputs well above their historical average rates for some LECs leading to short-run allocative inefficiency.
In reality, output elasticity of a factor may not equal to its cost share, due to allocative inefficiency.
Similarly, Chavas, et al. ([2005]), in a study of farm households in Gambia found that a significant part of a substantial allocative inefficiency that exists in the production systems of the farm households comes from inefficiency in labour allocation between farm and non-farm activities.
Because hospital care is more expensive than nursing or residential home care, bed-blocking is a signal of allocative inefficiency.
Significant allocative inefficiencies - albeit not the kind generally associated with monopoly - also result when the monopolist is a nonprofit hospital.
One of the desired characteristics for sectoral CEA is to identify current allocative inefficiencies as well as opportunities presented by new interventions.
Earlier research on Dutch general hospitals shows that the presence of relatively large share of skilled labor causes allocative inefficiencies [ 2].
The advantage of using the counterfactual or null scenario as the basis of the analysis is that it can identify current allocative inefficiencies as well as the efficiency of opportunities presented by new interventions [ 10].
Increased allocative inefficiencies, worsening terms of trade and loss of employment opportunities are coupled together to explain this loss of welfare.
