ABSTRACT
The use of benefit–cost analysis by criminal justice researchers has slowly been increasing over the past 30 years. While still in its infancy, benefit-cost analysis of criminal justice policies has recently moved from the academic arena to actual use by policy makers. Both federal and state policies are being informed by benefit-cost analysis and have been used in legislative discussions and formal rulemakings. This chapter begins with an overview of the fundamentals of conducting a benefit-cost analysis, and a brief review of how benefit-cost analysis is being used by researchers and government policy makers to compare alternative public policy options. Next, we examine the use of benefit-cost analysis in the criminal justice policy arena – including the important question of whether or not benefit-cost analysis is appropriate for analyzing criminal justice policies. Finally, we consider some of the important methodological issues and limitations associated with using benefit-cost analysis in the criminal justice arena.
