Abstract

Research Summary In this article, we review the theoretical paradigm underlying cost-benefit analysis and address some of the critiques of this framework that have arisen within criminal justice circles and other policy areas. We also review existing studies devoted to estimating the costs of specific crimes. We offer a brief discussion categorizing the alternative costs of crime and the various methodological approaches taken (hedonic analysis, contingent valuation, and accounting methods), with an explicit discussion of the relative strengths and weaknesses of each approach and debates within the economics profession pertaining to these methodologies. We argue that cost considerations broadly defined should be of central importance in criminal justice policy debates. However, we also highlight the potential for cost-consideration and important equity criteria to come into conflict.