NCJ Number
84561
Date Published
Unknown
Length
7 pages
Annotation
This paper describes the purpose and applications of cost-benefit analysis in criminal justice projects and outlines the steps used in a cost-benefit analysis.
Abstract
Cost benefit analysis is mainly a policy tool which shows the economic implications of resource allocations to criminal justice projects. Cost-benefit analysis may be used for feasibility studies or after project implementation as an evaluative tool. The first step of a cost-benefit analysis is the specification of the project's goals and objectives in measurable terms. The interrelationships among the project's program elements should be determined, with consideration given to the use of primary source data, pilot studies, and simulations. The criminal justice system rarely uses pilot studies because of their expense and the difficulty of extrapolating their costs and benefits. After the cost data collection method has been determined, the project outcomes should be identified and quantified in dollar terms. A model should also be formulated to link economic factors to economic benefits. Final steps in the analysis involve developing a decision rule for relating costs to benefits and determining tradeoffs among various combinations of program elements and comparing the cost-benefit results with those of a control or comparison group. Seven references are listed.