Notwithstanding these predictable misallocations, the Treasury Department still permits application of the ceiling rule under section 704(c).
(22) Both Example 3 and Example 4 illustrate the more general point: when the ceiling rule applies under the traditional method, it must result in misallocations of income, gain, loss, and deduction to both the contributor and noncontributors.
While private misallocations
of resources occur, they are quickly corrected by market forces.
The American (and world) economy is struggling mightily to correct for decades of fiscal abuse, mostly in the form of massive public and private indebtedness, huge misallocations
of investment, and the inflationary policies of central banks like the Federal Reserve.
(2) More often, however, they are implicit and are thought to be implemented by means of misallocations
of multiproduct, regulated firms' common costs.
That confidence brought a reduction a variety of serious risks, ranging from accidental missile launches to misallocations
of military resources.
deprive the mature Ropke of the exposure he merits.
Surely the thrift debacle has taught us that allowing insolvent institutions to remain open by living off the safety net can easily lead to massive taxpayer costs, not to mention serious misallocations
of credit and distorted competitive incentives.
were corrected, bad investments perished, debtors reached settlements with creditors, and simple living replaced extravagance.
Second, the third-best-allocatively-efficient character of the protocol is also manifest in its instructing the economic-efficiency analyst to base his or her conclusions about the effect of the choices they are reviewing on the amount of some categories of resource misallocation
in the economy as a whole on TBLE estimates/guesstimates of their impacts on the amount of such resource misallocation
in a TBLE-large random sample of the economy's ARDEPPSes.
In the modern era of interest-rate targeting (dating from the early 1980s), the Federal Reserve's concern about the misallocation
of credit has been largely overshadowed by its near-exclusive attention to unemployment and inflation.