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Social costs of robbery and the cost‐effectiveness of substance abuse treatment

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  • Anirban Basu
  • A. David Paltiel
  • Harold A. Pollack

Abstract

Reduced crime provides a key benefit associated with substance abuse treatment (SAT). Armed robbery is an especially costly and frequent crime committed by some drug‐involved offenders. Many studies employ valuation methods that understate the true costs of robbery, and thus the true social benefits of SAT‐related robbery reduction. At the same time, regression to the mean and self‐report bias may lead pre–post comparisons to overstate crime reductions associated with SAT. Using 1992–1997 data from the National Treatment Improvement Evaluation Study (NTIES), we examined pre–post differences in self‐reported robbery among clients in five residential and outpatient SAT modalities. Fixed‐effect negative binomial regression was used to examine incidence rate reductions (IRR) in armed robbery. Published data on willingness to pay to avoid robbery were used to determine the social valuation of these effects. Differences in IRR across SAT modalities were explored to bound potential biases. All SAT modalities were associated with large and statistically significant reductions in robbery. The average number of self‐reported robberies declined from 0.83/client/year pre‐entry to 0.12/client/year following SAT (p

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  • Anirban Basu & A. David Paltiel & Harold A. Pollack, 2008. "Social costs of robbery and the cost‐effectiveness of substance abuse treatment," Health Economics, John Wiley & Sons, Ltd., vol. 17(8), pages 927-946, August.
  • Handle: RePEc:wly:hlthec:v:17:y:2008:i:8:p:927-946
    DOI: 10.1002/hec.1305
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    References listed on IDEAS

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    Cited by:

    1. Harold Pollack & Peter Reuter & Eric L. Sevigny, 2011. "If Drug Treatment Works So Well, Why Are So Many Drug Users in Prison?," NBER Working Papers 16731, National Bureau of Economic Research, Inc.
    2. Jennifer Prah Ruger & Marek Chawarski & Mahmud Mazlan & Nora Ng & Richard Schottenfeld, 2012. "Cost-Effectiveness of Buprenorphine and Naltrexone Treatments for Heroin Dependence in Malaysia," PLOS ONE, Public Library of Science, vol. 7(12), pages 1-10, December.
    3. Jennifer Prah Ruger & Arbi Ben Abdallah & Craig Luekens & Linda Cottler, 2012. "Cost-Effectiveness of Peer-Delivered Interventions for Cocaine and Alcohol Abuse among Women: A Randomized Controlled Trial," PLOS ONE, Public Library of Science, vol. 7(3), pages 1-12, March.
    4. Sylvia Brandt & Peter Marie, 2011. "Racial Disparities in Hospital Length of Stay for Asthma: Implications for Economic Policies," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 152-169, March.
    5. Basu, Anirban, 2011. "Economics of individualization in comparative effectiveness research and a basis for a patient-centered health care," Journal of Health Economics, Elsevier, vol. 30(3), pages 549-559, May.
    6. Harold Pollack & Peter Reuter & Eric Sevigny, 2010. "If Drug Treatment Works So Well, Why Are So Many Drug Users in Prison?," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 125-160, National Bureau of Economic Research, Inc.

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