verb (used with object), misallocated, misallocating.
to allocate mistakenly or improperly: to misallocate resources.

mis-1 + allocate

misallocation, noun
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Based on the Random House Dictionary, © Random House, Inc. 2014.
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Example sentences
Governments do not need any more money, and they misallocate much of what they already take from us.
Excessive and ill-conceived pay encourages chief executives to overreach and misallocate resources.
But so badly did it manage risk and misallocate capital that our payments mechanism was in danger of collapse.
Indeed, the favorable treatment of capital gains plays a role in many tax shelters that misallocate investment.
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