ABSTRACT
Understanding the cost-of-crime literature requires some basic familiarity with several important economic concepts. This chapter provides a nontechnical review of the fundamental economic principles underlying the cost-of-crime literature. The purpose of providing this background is to give the reader enough knowledge to understand the proper uses and limitations of these estimates. Different methodologies for estimating costs will also be considered. Some of these alternative methodologies have only been employed in a limited fashion. Finally, recent attempts to estimate the costs of crime have been criticized by some authors. These critiques are reviewed in some detail.
