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Myths and Realities in Correctional Cost-Benefit Analysis

NCJ Number
230661
Journal
Corrections Today Volume: 72 Issue: 1 Dated: February 2010 Pages: 54-57,74
Author(s)
James Austin
Date Published
February 2010
Length
5 pages
Annotation
This article discusses the methodological weaknesses and common misuses of cost-benefit analysis claims used in the discussion of correctional budget issues.
Abstract
This article examines the use of cost-benefit analysis (CBA) in developing effective sentencing and corrections policies. The article first looks at one of the major weaknesses of CBA, namely that correctional budgets change directly in relation to the number of people being supervised or incarcerated, and presents several reasons why this assumption may not be true. Next, the article examines the difference between using fully loaded costs and marginal costs in a CBA, and the difference between using averted costs versus actual cost savings. Another problem that needs to be addressed when using CBA is separating costs by classification or supervision level; several examples are presented in the article. Finally, the issue of overstating the cost benefits of treatment is examined. The article concludes by listing 10 guidelines that can be followed when assessing CBA claims. 2 tables, 1 figure, and 9 endnotes

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