The U.S. has enjoyed 25 years of strong economic growth, in part because capital has been efficiently allocated to companies that can use it well.
In this ideal Western world capital is efficiently allocated and politics and commerce are neatly isolated from one another to create a stable system.
In a system of unlimited international trading, abatement is efficiently allocated across countries, but tax shifting can still be achieved through intra-firm transfer pricing.
Prices of securities provide signals that assist managers in making investment decisions and households in making savings decisions, helping to ensure that funds are efficiently allocated.
It also functions, in theory at least, as capitalism's central institution of corporate governance, both disciplining managers and ensuring that the economy's resources are efficiently allocated.
Human attention is a scarce resource — the neural effects of depression make sure the resource is efficiently allocated.
The donors in the simulation were efficiently allocating resources in proportion to the opportunity to avert the most DALYs per dollar, but political lobbying resulted in their allocations to the doctors snowballing into a large political lobbying fund that starved the preventive work of the PCWs and led to higher costs and unnecessary deaths.
Distribution of malaria prevention and treatment resources could potentially be more efficiently allocated to high-incidence areas.
Money that could be much more efficiently allocated is instead reinvested into SOEs, reinforcing their strength, and their bosses' fortunes.
The consequence is that resources are not being allocated efficiently within the economy and opportunities for significant gains in wellbeing and future growth are being lost".
