Allocational Efficiency

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Allocational efficiency

The effectiveness with which a market channels capital toward its most productive uses.

A condition in a market when all capital and other resources are assigned to projects with the highest profitability. Allocational efficiency is thought to benefit all economic actors to the greatest possible extent. In an environment of allocational efficiency, only the projects with the highest potential profitability receive funding and then only in the precise amount that is needed. Allocational efficiency assumes that the market is already informational and operationally efficient, that is, that all pertinent knowledge is public and non-income producing expenses (i.e. fees) are reasonably priced or non-existent. An allocatively efficient market has no imperfections and therefore does not exist in practice. However, markets can contain it to a greater or lesser extent. See also: Market failure.

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No references found			In the Coasean world of perfect information and no other transaction costs, it should make no difference for allocational efficiency who owns an entitlement initially or what form of protection it is accorded. Legal entitlements as auctions: property rules, liability rules, and ... by Ayres, Ian; Balkin, J.M. / Yale Law Journal			All-Inclusive Facility All-or-None Offering All-or-None Order All-or-None Underwriting All-Purpose Financial Statement all-risks policy Allegation Allegement de la dette alley Allfinanz Alliance Alliance of American Insurers Allied Lines Allied Member Alligator alligator property Alligator Spread ALLL Allocate Allocated Benefits Allocated Promotion Allocated Transfer Risk Reserve Allocation of Plan Assets on Termination Allocation under Lines of Credit Allocation-of-Income Rules Allocational Efficiency Allocative Efficiency allodial system Allonge Allotment Allotted Shares Allowable Order Cost allowance Allowance for Doubtful Accounts Allowance for Loan and Lease Losses Allowance Method Allowed Time alluvium Alma-0 Almacen bajo control aduanero Almoxarifado Alongside Alpha Alpha Coefficient Alpha Equation Alpha Risk Alpha Sigma Gamma Alpha Stocks Alpha-2 Alphabet Stock Alphanumeric Character			Allocation of Income Rules Allocation of Instructional Time Allocation of Plan Assets Allocation of Plan Assets on Termination Allocation of resources Allocation of Safety Objectives and Requirements Allocation Parentale d'Éducation Allocation Personnalisée d'Autonomie Allocation Perte d'Emploi Allocation Pour Jeune Enfant Allocation pour Perte de Gain Allocation Queue Element allocation request allocation request Allocation Review Committee Allocation Spéciale Vieillesse Allocation Spécifique d'Attente Allocation Supplémentaire d'Invalidité Allocation System Allocation under Lines of Credit Allocation Unique Dégressive Allocation Unique Identifier allocation unit allocation unit allocation unit allocation unit Allocation Vector Allocation-of-income rules Allocational Efficiency Allocatione facienda allocations allocations allocations allocations allocations allocations Allocations & Engineering Directorate Allocations Familiales Allocations, Assessments, and Analysis allocative allocative allocative allocative Allocative efficiency Allocative efficiency allocator allocator allocator allocator allocator allocators allocators allocators allocators Allocatur Allocatur allocentric Allocentric Place Discrimination Task allocheiria

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