One currently employed strategy to estimate the cost of crime is the “bottom-up” approach (Cohen, 1998) that takes into account victim-related costs (lost productivity, pain, and suffering, lost quality of life, etc.), criminal justice costs (police, courts, and corrections), and the loss of productivity for the offenders due to incarceration. Belfield and Levin (2009) identify a variety of costs associated with juvenile crime including the costs of operating the criminal justice system for policing, trials, and sentencing; the costs of incarceration, parole, and probation; the costs for restitution for victims, medical care, and lost tax revenues; and the marginal excess tax burden to provide government services. In addition to government costs, social loss associated with crime includes costs directly imposed on victims; transfers of assets from victims to criminals; avoidance costs by potential victims; and productivity losses from participating in criminal activity rather than work.
You may find more information with the below reference:
Cohen, M. A. (1998). The monetary value of saving a high-risk youth. Journal of Quantitative Criminology, 14(1), 5-33. Belfield, C. R., & Levin, H. M. (2009). High school dropouts and the economic losses from juvenile crime in California. Santa Barbara, CA: Gevirtz Graduate School of Education, University of California, Santa Barbara.
