Heroin addiction, crime and economic cost: A critical analysis

The conceptual framework for measuring the economic cost of crime is reviewed. Although this framework is generally accepted, specific applications are shown to contain conceptual errors. In the drug abuse area, where the greatest number of applications have been made, serious misapplications are documented. Because of these conceptual flaws and careless extrapolation of estimates that are hardly more than guesses, the total economic cost of drug-related crime has been greatly overestimated. The result has been to reinforce the policy emphasis on law enforcement and to mislead the public as to the important sources and magnitude of the total economic cost of drug abuse.