NCJ Number
59662
Date Published
1979
Length
35 pages
Annotation
COST FUNCTIONS ARE ESTIMATED FOR SEVERAL TYPES OF CALIFORNIA CORRECTIONAL INSTITUTIONS FOR 1948-1964 AND FOR SELECTED CALIFORNIA JAILS FROM 1971 THROUGH 1972.
Abstract
CHOSEN FOR ANALYZING THE COSTS OF CORRECTIONS WERE FIVE CALIFORNIA STATE CORRECTIONAL INSTITUTIONS AND 128 CITY AND COUNTY JAILS IN CALIFORNIA. THE COST DATA ON THE CORRECTIONAL INSTITUTIONS WERE TAKEN FROM THE BUDGETS OF THE CALIFORNIA DEPARTMENT OF CORRECTIONS REPORTED IN THE CALIFORNIA STATE BUDGET, 1948-1964; COST DATA FOR CITY AND COUNTY JAILS CAME FROM THE CALIFORNIA BUREAU OF CRIMINAL STATISTICS 'JAIL SPACE UTILIZATION STUDY.' IN CONSIDERING THE OUTPUT OF PRISONS AND JAILS, THEY ARE VIEWED AS MULTIPLE-PRODUCT FIRMS PRODUCING CONFINEMENT, HOTEL-LIKE AMENITIES, AND REHABILITATION SERVICES. LACKING A CONVINCING MEASURE OF REHABILITATIVE OUTPUT, ITEMS DEEMED TO BE ASSOCIATED WITH SUCH SERVICES WERE NETTED OUT. AVERAGE DAILY INMATE POPULATION WAS TAKEN AS THE PRODUCT MEASURE. IT WAS NOT POSSIBLE TO KEEP THE QUALITY OF THE HOTEL AND PERSONAL SERVICES CONSTANT, EXCEPT IN AN IMPERFECT WAY FOR JAILS. TO THE EXTENT THAT THESE SERVICES ARE INVERSELY RELATED TO THE NUMBER OF PRISONERS IN A FIXED-CAPACITY INSTITUTION, STUDY RESULTS UNDERESTIMATE THE TOTAL COST OF THE CORRECTIONAL INDUSTRY. FOR THE TWO MAXIMUM SECURITY PRISONS--SAN QUENTIN AND FOLSOM--SIGNIFICANT ECONOMIES OF SCALE IN CONFINEMENT WERE FOUND, REGARDLESS OF WHETHER TOTAL OR AVERAGE COST FUNCTIONS WERE ESTIMATED. SLIGHTLY INCREASING COSTS WERE ASSOCIATED WITH CONFINING A MORE VIOLENT INMATE POPULATION. FOR THE THREE MEDIUM SECURITY PRISONS-- SOLEDAD CORRECTIONAL TRAINING FACILITY, THE DEUEL VOCATIONAL INSTITUTE, AND THE CALIFORNIA MEN'S COLONY--LONG-RUN COST FUNCTIONS WERE ESTIMATED. FOR DEUEL AND THE CALIFORNIA MEN'S COLONY, THERE WERE CONSTANT RETURNS TO SCALE IN CONFINEMENT, WITH LONG-RUN MARGINAL AND AVERAGE COST APPROXIMATELY EQUAL AT LEVELS OF $1,500-$1,700. EVIDENCE FOR LONG-RUN ECONOMIES OF SCALE IN CONFINEMENT WERE ONLY AT THE CORRECTIONAL TRAINING FACILITY. IT WAS NECESSARY TO PRODUCE SEPARATE ESTIMATES FOR CAPITAL AND OPERATING COSTS FOR CITY AND COUNTY JAILS. THE REGRESSIONS SUGGEST A SIMPLE LINEAR RELATIONSHIP BETWEEN THE CAPACITY OF A JAIL AND THE COST OF THE PHYSICAL PLANT, ALTHOUGH THE RELATIONSHIP IS NOT STATISTICALLY POWERFUL. FOR ESTIMATES OF LONG-RUN OPERATING COSTS, THE HYPOTHESIS OF NONDECREASING LONG-RUN MARGINAL COSTS WAS ACCEPTED. BY INTRODUCING A SERVICE QUALITY VARIABLE, STILL STRONGER EVIDENCE OF LONG-RUN CONSTANT RETURNS TO SCALE FOR CITY AND COUNTY JAILS WAS FOUND. THESE ESTIMATES ARE ONLY A BEGINNING; FURTHER RESEARCH IS NEEDED IN THE ECONOMICS OF CORRECTIONAL INSTITUTIONS. TABULAR DATA AND REFERENCES ARE PROVIDED. (RCB)