A Short-Run Cost-Benefit Analysis of Community-Based Interventions for Juvenile Offenders

Abstract

Recent empirical research indicates that for juvenile offenders various community-based intervention techniques result in significantly greater positive effects when compared to more traditional approaches. This article presents a cost-benefit evaluation of two such techniques: intensive supervision and monitoring (ISM) and intensive outpatient counseling with cognitive behavioral therapy (CB). A two-equation regression model that controlled for differences in demographic characteristics, personality traits, behavior, and the home environment of the subjects was estimated. The results indicate that, relative to those on probation, participants in the CB program imposed significantly fewer costs on the justice system during the investigative period. No significant difference in justice system expenditures was demonstrated by the ISM group. Comparing the reduced costs of the CB program to the marginal cost of administering the program revealed a net saving of $1,435 in justice system expenditures per youth offender served for the sample period.