From small law offices to federal agencies, all entities within the justice system are governed by complicated economic factors and face daily financial decision-making. A complement to Strategic Finance for Criminal Justice Organizations, this volume considers the justice system from a variety of economic and financial perspectives and introduces quantitative methods designed to improve the efficiency and effectiveness of organizations in both the non-profit and for-profit sectors.
Using only a minimum of theory, Economic and Financial Analysis for Criminal Justice Organizations demonstrates how to make decisions in the justice system using multiple financial and economic models. Designed for readers with little knowledge of advanced mathematics, quantitative analysis, or spreadsheets, the book presents examples using straightforward, step-by-step processes with Excel and Linux Calc spreadsheet software.
A variety of different types of decisions are considered, ranging from municipal bond issuance and valuation necessary for public revenues, pension planning, capital investment, determining the best use of monies toward construction projects, and other resource planning, allocation, and forecasting issues.
From municipalities and police departments to for-profit prisons and security firms, the quantitative methods presented are designed to improve the efficiency and effectiveness of all organizations in the justice domain.
Table of Contents
Show Me Your License: Introductory Concepts
Innocent or Guilty? Perspectives of Decisions
A 25-to-Life Sentence: Strategic Economic and Financial Decisions
The Restitution Order: Capitalization and Executive Responsibility
How Do We Slice the Pie? Foundations of Economics
Tools of the Trade: Foundations of Financial Decisions
Following the Money: Capital Budgeting
Pay Me Now or Pay Me Later? The Minimum Attractive Rate of Return
Lucky Number 7: Concepts of Probability and Mathematical Reasoning
The Odds Are Against Us: Probability Distributions and Mathematical Reasoning
Is This the Line? Queuing Theory
Risky Business: Sensitivity and Scenario Analyses
Not 007, But … Bond Analysis
Buy Low or Sell High? Stock Analysis
How Do We Measure Up? Ratio Analysis
Buyer Beware: Leasing versus Purchasing
Is It Worth Your Time? Cost–Benefit and Break-Even Analyses
The Crystal Ball: Predictive Analysis
How Do We Relate? With Correlation!
Show Me the Money: Benefits Analysis
The Shift Briefing: Multiple Perspectives
Appendix A: Additional Techniques of Analysis—Modified Internal Rate of Return
Appendix B: Tickets versus Warnings—Options Analysis
Appendix C: Modified Accelerated Cost Recovery System (MACRS) Tables
Appendix D: Analytical Tree Constructs
Appendix E: Bayes Theorem
Appendix F: Hypothesis Testing