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As public services budgets are cut, the 'Payment by Results' (or Pay for Success) model has become a popular choice in public sector commissioning. Social Impact Bonds are a variant of Payment by Results also promoted by proponents of social (or impact) investing. But how effective are these approaches? This short book asks whether the Payment by Results model is an efficient way to unlock new capital investment, help new providers to enter the 'market' and foster innovation, or whether the extension of 'neoliberal' thinking, complexity and the effects of managerialism undermine the effective delivery of social outcomes. Synthesising lessons from the UK and US for the first time, the book draws on published work in both countries together with insights from the authors' own research and consultancy experience to offer a balanced and bipartisan overview of a field where the evidence has been weak and there are strong ideological agendas in play.

As public services budgets are cut, the 'Payment by Results' (or Pay for Success) model has become a popular choice in public sector commissioning. Social Impact Bonds are a variant of Payment by Results also promoted by proponents of social (or impact) investing. But how effective are these approaches? This short book asks whether the Payment by Results model is an efficient way to unlock new capital investment, help new providers to enter the 'market' and foster innovation, or whether the extension of 'neoliberal' thinking, complexity and the effects of managerialism undermine the effective delivery of social outcomes.

1. Introduction -- 2. A brief introduction to economic theory -- 3. Modelling criminal behaviour -- 4. Rational choice theory in criminology -- 5. The labour market, poverty and crime -- 6. Economic tools : estimating the bottom line of criminal justice interventions -- 7. The costs of crime -- 8. Crime reduction -- 9. The economic analysis of prisons and community justice alternatives -- 10. Organised crime -- 11. Illicit drugs.

The economics of crime is an area of growing activity and concern, increasingly influential both to the study of crime and criminal justice and to the formulation of crime reduction and criminal justice policy. It has become increasingly central as well to the study of crime and criminology, but there remains a strong need for a comprehensive and accessible text which covers the field. "Crime and Economics" is written predominantly for students of criminology, but will also be valuable for managers and policy-makers in the field. It does not assume knowledge of economics. The book be

This paper considers criminal justice policy in England and Wales since the Transforming Rehabilitation (TR) agenda implemented in 2013. TR rested on the proposition that probation services are best provided in a market context. Motivated by profit and extrinsic rewards, private sector consortia, and their employees, theoretically act efficiently to deter and rehabilitate offenders from crime. However, there is evidence that marketisation itself undermines the prospects of efficient social policy. Over-reliance on markets may undermine pro-social norms through emphasising individualism and extrinsic returns. Outsourcing is also associated with increasing inequality, which may also undermine pro-social norms. Further, the emphasis placed on self-interest in framing market-based incentive structures is associated with declining public welfare support for the economically marginalised and increased use of relatively expensive incarceration. In application, TR proved unsustainable. The innovation involves increasing reliance on the para-state sector, in which private profits rely on public payment. However, the profits expected under TR fell short of expectations, in part due to changes in wider society. The early cancellation of TR contracts highlights the inflexible nature of such public sector procurement. On the basis of theory and practice, we suggest a reconsideration of the government's position on probation and set out reasonable steps to address shortcomings in the current system.

This paper considers criminal justice policy in England and Wales since the Transforming Rehabilitation (TR) agenda implemented in 2013. TR rested on the proposition that probation services are best provided in a market context. Motivated by profit and extrinsic rewards, private sector consortia, and their employees, theoretically act efficiently to deter and rehabilitate offenders from crime. However, there is evidence that marketisation itself undermines the prospects of efficient social policy. Over-reliance on markets may undermine pro-social norms through emphasising individualism and extrinsic returns. Outsourcing is also associated with increasing inequality, which may also undermine pro-social norms. Further, the emphasis placed on self-interest in framing market-based incentive structures is associated with declining public welfare support for the economically marginalised and increased use of relatively expensive incarceration. In application, TR proved unsustainable. The innovation involves increasing reliance on the para-state sector, in which private profits rely on public payment. However, the profits expected under TR fell short of expectations, in part due to changes in wider society. The early cancellation of TR contracts highlights the inflexible nature of such public sector procurement. On the basis of theory and practice, we suggest a reconsideration of the government's position on probation and set out reasonable steps to address shortcomings in the current system.

There is a growing disaffection with mainstream politics in the world's liberal democracies. In particular, the UK has become an increasingly divided nation; as evidenced by, for example, increasing inequality, an emphasis on individualism, the so-called North/South divide and the polarised debate about the UK's leaving the European Union. Many leading UK politicians claim inheritance of the "Thatcher legacy" to legitimate their proposed policies, yet it is not clear what is that legacy. Thatcher's policies, instituted in the 1980s and broadly pursued by subsequent governments, changed the economic and social outlook of the UK. Criticism of her record is taken to indicate one is a left-wing ideologue. Our contribution in the following is that we judge Thatcher's policies by no standards other than her own. Utilising an holistic approach, we consider whether neo-liberal policies facilitated or undermined the UK's achieving Thatcher's stated moral outcomes: the growth of democratic capitalism and the strengthening of the moral economy. We demonstrate, in contrast to contemporary narratives of her "saving the country", the neo-liberal economic experiment has failed to deliver, even on Thatcher's own terms. This analysis has contemporary domestic and global implications as generally Thatcherite policies continue to be applied in the UK and in other nations around the world.

In recent years the UK government has emphasized evidence-based policy, as a part of which the Payment by Results (PbR) approach has increasingly been promoted. Payment by Results allows the government to pay a provider of services on the basis of specified outcomes achieved rather than the inputs or outputs delivered. Linked to PbR is the innovative source of funding social interventions know as Social Impact Bonds (SIBs). We discuss the potential benefits of PbR and survey its use across the UK public sector. Then, concentrating in particular on the Criminal Justice System (CJS) we outline three methodological challenges to the implementation of PbR: gaming, measuring outcomes and identifying fiscal benefits. We then identify a number of challenges to the implementation of PbR. We conclude that PbR has a place in commissioning services, but that its role in the CJS is likely to be limited and unlikely to succeed as a socially efficient means of attracting new sources of funding. We finish by considering two alternatives to PbR: justice reinvestment and personalization.

This article considers important developments over the last decade which have laid the foundations for a new approach to criminal justice policy; an approach in which economic analysis is central. These developments include aspects of the policy debate on sentencing; the government's commitment to evidence-based policy; investment in the economics profession across government; and the rise of the Justice Reinvestment movement. While many of the opportunities presented for economic analysis of sentencing policy have not yet been exploited, there is reason to believe that they will be over the next few years. Various reasons are discussed including the current economic situation, which makes increasingly untenable the continuing commitment of government to increasing prison capacity without consideration of more efficient alternatives. The article concludes by suggesting some steps that the new government might take to ensure that the benefits of an economically efficient approach to criminal justice policy are realized.

This collection offers a comprehensive review of the origins, scale and breadth of the privatisation and marketisation revolution across the criminal justice system. Leading academics and researchers assess the consequences of market-driven criminal justice in a wide range of contexts, from prison and probation to policing, migrant detention, rehabilitation and community programmes. Using economic, sociological and criminological perspectives, illuminated by accessible case studies, they consider the shifting roles and interactions of the public, private and voluntary sectors. As privatisation, outsourcing and the impact of market cultures spread further across the system, the authors look ahead to future developments and signpost the way to reform in a 'post-market' criminal justice sphere.

1. Introduction -- 2. Current challenges for criminal justice policy -- 3. What is justice reinvestment? -- 4. Theorising justice reinvestment -- 5. Data analysis and justice mapping -- 6. Economic methods -- 7. Using evidence and negotiating politics -- 8. Towards a new theory of justice reinvestment -- 9. Applications of a new theory of justice reinvestment -- 10. Conclusion.