Abstract

The aim of this study is to make a cost-benefit analysis of the Treatment Foster Care Oregon (TFCO) program, a treatment program for children and juveniles with behavioural problems who are placed in out-of-home placements. Compared to treatment as usual, TFCO has been shown to reduce the number of violent crimes. This study estimates the net present value (NPV) of the program by comparing the expected reduction in cost of violent crimes due to the introduction of the program to the incremental cost of the program. The result shows a positive NPV of $37,829 per participant, or a total NPV of $718,751.

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