110721 victim costs webinar final


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  • The reason we are talking about this is that we talk about crime prevention is to reduce crime, reduce victimization. So when we’re analyzing the merits of a policy or program that affects crime, when we’re weight its costs and benefits, we have to examine how it affects victimization. A thorough, comprehensive CBA needs to measure victim benefits, or victim costs.
  • You can ask questions at any time by typing a question or comment in the chat box feature to the left of your screen. A CBKB staff member will respond your question or queue up your question to the speaker’s attention.
  • Researchers have estimated the victim costs of crime and we can use those estimates in CBA and other analyses. But before we get into the methods, we are honored to have TS here with us to first talk about what kinds of costs victims experience. TS is… give background. She will tell us what vc are, and share her perspectives on why this matters. Brings victims’ perspectives into the conversation on policy and budget decisions.
  • Just mention a few key points here.. Judges, prosecutors, lawmakers and policymakers Prevention reduces potential for new victimization and repeat victimization More restitution orders and financial support for crime victim compensation
  • Talking points: Mention that tangible is synonymous with monetary Describe these most common types of costs, and then briefly mention the rest (on the next slide)
  • Talking points: Briefly mention that these are some of the other costs.
  • Talking points: Victims also experience non-monetary costs that OVS is unable to compensate for. These include trauma-related issues, etc (give other examples); relocation, security and counseling create tangible costs closely related to intangible costs Mention that these are very difficult to measure (foreseeability, probability and hope): ripple effect Mention that next, Kathryn McCollister will talk about some of the methods used to quantify these costs.
  • Over $200 thousand to date Child Sexual Abuse Dissociative Identity Disorder In-patient and out-patient counseling
  • Notes from Valerie to Kathryn: If you could briefly mention what goes into each type of cost, that would be great. I tried to keep the number of words on the slide to a limit, so I’m hoping you could mention the components instead of having them on the slide. Criminal justice system costs: police protection, legal and adjudication services, corrections Crime career costs: opportunity cost of engaging in crime rather than legal, productive activities Victim costs: medical care, lost wages, property loss/damage, plus intangible costs associated with pain and suffering, decreased quality of life, psychological distress
  • Notes for Kathryn from Valerie: It would be good to mention here that the study also looked at criminal justice costs and crime career costs. I didn’t put it on the slide because I thought it might be distracting. I think it would be good if you could mention that you did the study to help understand substance abuse costs, but I’m afraid that including several slides on that at the beginning might mislead listeners into thinking that measuring victim costs is for substance abuse only.
  • Notes for Kathryn from Valerie: here it would be great if you could explain what each category means, particularly some of the costs that are less obvious, risk-of-homicide ( Probability certain offense leads to homicide times mean present value of lifetime earnings) . These explanations don’t need to be too long, because Tina Stanford will mention these earlier in the webinar. I added this list from a different slides, so that folks can see right away what the study looked at. I also deleted the pie chart on substance abuse costs.
  • Notes for Kathryn from Valerie: I added these bullet points based on the info on p. 5 of you 2010 study. It would be great if you could mention how this and other methods were developed.
  • Notes for Kathryn from Valerie: if you could provide more detail on each of these categories, that would be great. Particularly how you calculate the risk of homicide and the present value of earnings. I simplified the definition for the slide, but maybe you could add some detail on present value, etc.
  • Notes for Kathryn from Valerie: if you could provide more detail on each of these categories, that would be great. Particularly how you calculate the risk of homicide and the present value of earnings. I simplified the definition for the slide, but maybe you could add some detail on present value, etc.
  • Notes for Kathryn from Valerie: your slide said that the pain-and-suffering costs are calculated for 3 crime categories, but the study includes 4 (rape, robbery, aggravated assault, murder). I changed it to 4 on this slide, but please let me know if that’s wrong. It would be great if you could provide a bit more detail in your verbal presentation, saying that Jury Verdict Research provides info on jury award per injury, and that NCVS provides the probability of injury for different offenses, which helps you figure out the jury award per offense.
  • Notes for Kathryn from Valerie: - Developed by Mark Cohen
  • Notes for Kathryn from Valerie: It would be great if you could mention some of the advantages and disadvantages of this approach. One advantage is that it’s more comprehensive, but one disadvantage is that some audiences are skeptical to believe very high costs. You may also want to mention your study did not use this approach.
  • Notes for Kathryn from Valerie: I took this info from a chart called total crime victim cost per offense. I thought it be good to pick an example and go through it. Maybe you could briefly go over how each cost category was calculated.
  • Notes for Kathryn from Valerie: - The data on this chart comes from your chart showing these costs for rape, robbery, and assault. I thought it would be easier to focus on one crime. - You may want to walk listeners through this chart, repeating that pain and suffering costs are estimated by subtracting tangible costs from the award, and also that awards are for injuries not for crimes, so you had to convert costs per injury to costs per crime.
  • Notes for Kathryn from Valerie: Here you could just mention a few key points, such as the role of intangibles in crime like rape, mention a few crimes with high and low victim costs, etc.
  • You can ask questions at any time by typing a question or comment in the chat box feature to the left of your screen. A CBKB staff member will respond your question or queue up your question to the speaker’s attention.
  • Helps policymakers get clear and accessible information on the economic pros and cons associated with criminal and juvenile justice investments. Bridges the gap between research and policy by putting evidence in context. What works? Is “what works” worth it? What should we do?
  • Outro slide
  • 110721 victim costs webinar final

    1. 1. Demystifying Victim CostsJuly 25, 2011Tina Stanford, Director, New York State Office of Victim ServicesKathryn McCollister, Assistant Professor, University of Miami, School of MedicineValerie Levshin, Policy Analyst, Cost-Benefit Analysis Unit, Vera Institute of Justice Slide 1
    2. 2. WelcomeDemystifying Victim CostsThe webinar will start at 2pm.Call 1-800-659-6930 for the audio portion of thewebinar. Slide 2
    3. 3. Demystifying Victim CostsTina Stanford Kathryn McCollister Valerie Levshin Director Assistant Professor Policy Analyst NYS Office of University of Miami Vera Institute of Victim Services School of Medicine Justice Slide 3
    4. 4. Why Examine Victim Costs • The justice system seeks to prevent and address victimization and its consequences• Analysis of criminal justice programs and policies has to account for victim costs Slide 4
    5. 5. Today’s AgendaThe Role of Victim Costs in Cost-Benefit 5 minutes AnalysisOverview of Victim Costs 15 minutesMethods for Estimating Victim Costs 15 minutesDiscussion and Q & A 20 minutes Slide 5
    6. 6. Housekeeping items Questions  Use the chat feature to send us your questions at any time during the webinar.  We will address your questions after each section of the presentation. Slide 6
    7. 7. Housekeeping itemsWebinar support and troubleshooting  Call: (800) 843-9166  Email: help@readytalk.comThis webinar is being recordedThe recording and PowerPoint will be posted to cbkb.org Slide 7
    8. 8. The Role of Victim Costs inCost-Benefit Analysis Valerie Levshin Policy Analyst Vera Institute of Justice Slide 8
    9. 9. What is Cost-Benefit Analysis (CBA)?• A tool to assess the pros and cons of policies and programs• A method for finding out what will achieve the greatest net benefit to society• An approach to policymaking Slide 9
    10. 10. CBA in Five Steps1. Determine the impact of the initiative2. Determine whose perspectives matter3. Measure costs4. Measure benefits (in dollars)5. Compare costs and benefits Slide 10
    11. 11. The Role of Victim Costs in a CBA• Crime imposes costs on victims• If a program or policy affects crime, CBA needs to account for victim costs• If it increases crime, measure the victim costs• If it decreases crime, measure the victim benefits (avoided victim costs) Slide 11
    12. 12. Measuring Victim Costs?• Placing a dollar value on rape? Murder?• Is it possible?• Is it ethical?• Is it necessary? Slide 12
    13. 13. Research Progress• Researchers have developed methods to measure the monetary and the non-monetary victim costs• These estimates can be used in CBA and other analyses Slide 13
    14. 14. Why It Matters• Measuring victim costs helps measure the full benefits of programs and policies that reduce crime, and compare them to costs • Brings victims’ perspectives into the conversation on policy and budget decisions. Slide 14
    15. 15. Overview of Victim Costs Tina Stanford Director NY Office of Victim Services Slide 15
    16. 16. New York State Office of Victim Services• Compensates victims for out-of-pocket expenses• Funds community-based services for victims• Advocates for victims’ rights Slide 16
    17. 17. Why Measure Victim Costs in PolicyAnalysis?• To educate criminal justice professionals and policymakers on victimization costs• To justify increased funding for crime prevention initiatives• To understand the importance of restitution and compensation Slide 17
    18. 18. Monetary (Tangible) Victim Costs• Medical expenses• Counseling services• Essential personal property• Lost earnings Slide 18
    19. 19. Monetary (Tangible) Victim Costs• Transportation to court appearances• Crime scene cleanup• Moving expenses• Occupational rehabilitation expenses• Cost of services of domestic violence shelter• Burial expenses Slide 19
    20. 20. Non-Monetary (Intangible) Costs• Pain and suffering• Fear• Decreased quality of life• Psychological distress Slide 20
    21. 21. Case Study #1: Physical Injury Claim• Child sexual abuse• Over $200,000 to date• Dissociative Identity Disorder• In-patient and out-patient counseling Slide 21
    22. 22. Case Study #2: Personal Property Claim• Petit Larceny• Claimant over 60• Over $900 for boxspring and mattress• Over $800 for suitcase of clothing• $1,000 deductible• $500 maximum paid Slide 22
    23. 23. Questions Slide 23
    24. 24. Methods for EstimatingVictim Costs Kathryn McCollister Assistant Professor University of Miami, School of Medicine Slide 24
    25. 25. Health Economics Research Group(HERG) at the University of Miami• Members include health economics faculty from departments of Sociology, Epidemiology and Public Health, and affiliated institutions• Conducts research on the economics of: • substance abuse treatment and prevention • HIV/AIDS • criminal justice programs • mental health • other Slide 25
    26. 26. Background• 2010 Study: The cost of crime to society: New crime- specific estimates for policy and program evaluation.• Measured the main components of the societal cost of crime:  Criminal justice system costs  Crime career costs  Victim costs Slide 26
    27. 27. Victim Costs• Our 2010 study estimated the societal cost of crime including victim costs across 13 offenses.• Crime cost estimates are used to measure the economic impact of substance abuse treatment and crime prevention programs. Slide 27
    28. 28. Costs Included in the StudyMonetary Non-Monetary(Tangible) Costs (Intangible) Costsmedical care pain and sufferinglost wages decreased quality of lifeproperty loss/damage psychological distresscash lossescounselingrisk-of-homicide(lifetime earnings) Slide 28
    29. 29. Why Include Intangible Costs?• True societal impact of crimes such as aggravated assault, rape/sexual assault, and robbery would be underestimated if intangible victim losses were not included.• Direct/tangible costs only account for 12 – 47% of total crime costs for these offenses. Slide 29
    30. 30. Methods for Estimating Victim Costs• Cost-of-illness (COI)• Jury compensation method• Willingness-to-Pay (WTP) Slide 30
    31. 31. Cost-of-Illness Method• Used to measures tangible victim costs• Tangible victim cost per crime = total national cost / number of crimes • Department of Justice collects data on medical expenses, cash losses, property theft/damage, and lost earnings for 6 crime categories. • Federal Emergency Management Agency collects data on arson-related damages. • Bureau of Justice Statistics collects data on the number of crime in each category Slide 31
    32. 32. Cost-of-Illness Method (cont)• Mental health costs • Cohen & Miller (1998) surveyed mental health care professionals about treatment provided to patients that had been victims of crime • Estimated value of counseling/treatment by victims per offense Slide 32
    33. 33. Cost-of-Illness Method (cont)• Risk-of-homicide costs • Multiply the probability that a certain type of offense will lead to a homicide by individuals’ average lifetime earnings • Lifetime earnings used to value lost life Slide 33
    34. 34. Jury Compensation Method• Used to measure intangible (pain and suffering) costs• Intangible cost = jury award – tangible cost• Tangible costs here included medical expenses and lost wages.• Study measured intangible costs for 4 categories: murder, rape/sexual assault, robbery, aggravated assault Slide 34
    35. 35. Jury Compensation Method• Jury awards are for injuries, not for crimes,• But, we can link the two based on probability of sustaining typical crime-related injuries such as broken bones, gun shot wounds, etc.• National Crime Victimization Surveys report per offense probability of an injury resulting from crime• Intangible cost per crime = probability of an injury per crime x intangible award per injury Slide 35
    36. 36. Willingness-to-Pay Method• Measures intangible costs• Estimates society’s willingness to pay to avoid a victimization by survey• Survey of more than 1,000 residents revealed that the average household is willing to pay $100-$150 to reduce serious crimes by 10% in their area. • rape/sexual assault $286,277 • armed robbery $280,237 • serious assault $84,555 • burglary $30,197 Slide 36
    37. 37. Example: Breakdown of Tangible Costs of aRobbery• Economic loss: $1,357 • Total economic loss of all robberies divided by number of robberies • $967,280,000 / 712,610• Risk-of-homicide cost: $1,663• Mental health cost: $1,047• Total robbery cost: $3,299 Slide 37
    38. 38. Example: Breakdown of Intangible Costs ofa RobberyIntangible cost per crime = probability of an injury per crime x intangible award per injury Type of Injury Average Jury Pain-and-Suffering Award EstimateGunshot wound $63,404 $48,492Broken bones + internalinjury $34,020 $20,591Knife wound $34,020 $30,327Knocked unconscious $6,239 $4,200Bruises, cuts, etc. $1,826 $1,359All other injuries $1,826 $1,042 Slide 38
    39. 39. Victim CostsType of Offense Tangible Cost Intangible Cost Total CostMurder $8,442,000Rape/Sexual Assault $5,556 $199,642 $205,085Aggravated Assault $8,770 $95,023 $96,254Robbery $3,299 $22,575 $24,211Arson $11,452 $5,133 $16,127Motor Vehicle Theft $16,114 $262 $6,352Household Burglary $1,362 $321 $1,653Larceny/Theft $480 $10 $489 Slide 39
    40. 40. Challenges and Limitations• Study uses national data; local costs may be different• No estimates for drug crimes• Costs of psychological distress are not included• Costs of crime prevention efforts like burglar alarms not included. Slide 40
    41. 41. Discussion Slide 41
    42. 42. Discussion Use the chat feature to send us your questions. Slide 42
    43. 43. Wrap-Up Slide 43
    44. 44. References• McCollister, Kathryn E., Michael T. French, and Hai Fang. (2010). The cost of crime to society: New crime-specific estimates for policy and program evaluation. Drug and Alcohol Dependence, 108, no. 1-2, 98-109.• Miller, Ted R., Mark A. Cohen, and Brian Wiersema. (1996). Victim Costs and Consequences: A New Look. Washington, DC: National Institute of Justice.• Cohen, Mark A. (1998). The Monetary Value of Saving a High-Risk Youth. Journal of Quantitative Criminology. 14, 1, 5-33. Slide 44
    45. 45. Follow-upPlease complete the evaluation form as you leave this training.Share your comments and questions with us on Twitter and Facebook • www.twitter.com/CBKBank, hashtag #cbkbwebinar • www.facebook.com/costbenefitVisit the Cost-Benefit Knowledge Bank for CriminalJustice at http://cbkb.org.Subscribe to receive updates from CBKB. Slide 45
    46. 46. The Cost-Benefit Knowledge Bank for Criminal Justice (CBKB) is aproject of the Vera Institute of Justice funded by the U.S.Department of Justice’s Bureau of Justice Assistance. • Website (cbkb.org) • Cost-Benefit Analysis Toolkit • Snapshots of CBA Literature • Podcasts, Videocasts, and Webinars • Roundtable Discussions • Community of Practice Slide 46
    47. 47. Contact InformationTina StanfordTina.stanford@ovs.ny.govKathryn McCollisterkmccolli@med.miami.eduValerie Levshinvlevshin@vera.orgcbkb@cbkb.orghttp://www.cbkb.org Slide 47
    48. 48. This project is supported by Grant No. 2009-MU-BX K029 awarded by the Bureau ofJustice Assistance. The Bureau of Justice Assistance is a component of the Office ofJustice Programs, which also includes the Bureau of Justice Statistics, the NationalInstitute of Justice, the Office of Juvenile Justice and Delinquency Prevention, andthe Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, andTracking. Points of view or opinions in this document are those of the author and donot represent the official position or policies of the United States Department ofJustice. Slide 48
    49. 49. Thank you! Slide 49
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