NCJ Number
84503
Date Published
1981
Length
34 pages
Annotation
The application of the principles of economics to criminal justice activities is outlined, and the economics of public and private behavior is reviewed, followed by a step-by-step use of economics to evaluate policy alternatives and descriptions of techniques of economic analysis.
Abstract
Economics is involved in the criminal justice system, because the criminal justice system must confront scarcity, make choices among alternative programs, and recognize that opportunity costs are involved in various courses of action. Further, economic forces help to shape many of the problems that must be dealt with by the police, courts, and corrections. Before studying the application of economics specifically to criminal justice, it is necessary to understand how the economic system operates to deal with scarcity and human wants and how what is purchased in the private market differs from that paid for by taxation. This involves determining how the market system operates, the conditions under which it fails to function satisfactorily so as to prompt government intervention in certain private behavior, and how public decisions and public goods differ from those of the market sector. Steps in applying economic principles to policy choices include (1) articulating policy goals and objectives, (2) identifying the clientele to be affected by the policy, (3) specifying alternative courses of action, (4) monitoring and evaluating policy outcomes, and (5) allowing for feedback. Cost benefit analysis and econometric analysis are two quantitative techniques that can be applied to the study of economic phenomena. Graphic illustrations, 24 notes, and 20 references are provided.