Cost effectiveness analysis

Professor Lawrence Sherman explains how policing can prevent far more crimes than prison per dollar spent. His analysis of the cost-effectiveness of prison compared to policing suggests that states can cut their total budgets for justice and reduce crime by reallocating their spending on crime: less prison, more police.

How do we decide how to allocate criminal justice resources in a way that minimizes the social harms from both crime and policy efforts to control crime? How, for that matter, do we decide how much to spend on the criminal justice system and crime control generally, versus other pressing needs? These questions are at the heart of benefit-cost analysis.