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 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 policymakers in the field. It does not assume knowledge of economics. The book begins with an introduction to the relationship between economics and crime, and moves on to consider economic theory, research methods, and the ways in which economics has influenced criminological theory. Having reviewed the fundamental issues and some relevant analytical tools, we explore reasons why people commit crime; the extent of crime and its economic and social costs; and economic aspects of punishment and crime reduction. In doing so we pose such questions as: Can society decrease criminal activity from a basis of economic disincentives? What forms of crime reduction and methods of reducing re-offending are most cost beneficial? How can the economic efficiency of policing be measured? Two case study chapters address two major forms of criminal activity - organised crime and illicit drug use - exploring the ways in which economics can help us understand the operation of different forms of illegal markets. In conclusion we draw together the key themes of the book and look at future directions for economic analyses within criminology.