SINCE IN ADDITION TO CRIME PREVENTION THE OUTPUT OF THE POLICE ALSO INCLUDES A PUNITIVE COMPONENT, OUTPUT EQUATIONS ARE EMPLOYED WHICH COMBINE DATA WITH PREVENTION ESTIMATES TO PRODUCE AN INDEX OF POLICE REAL OUTPUT. THE AGENCY'S BEHAVIOR IS THEN ANALYZED IN TERMS OF EFFECTS RESOURCE USE HAS ON ITS OUTPUT, WHICH ARE FORMALIZED IN A POLICE PRODUCTION FUNCTION. THE MODEL HAS BEEN APPLIED TO THE CITY OF LOS ANGELES AND QUANTITIVE OUTPUT AND PRODUCTION FUNCTION RESULTS ARE REPORTED. FINALLY, THE ANALYSIS IS RELATED TO THE PROCESS OF MUNICIPAL BUDGETING. SPECIFICALLY, IN LOS ANGELES DURING 1956 TO 1970, IT WAS FOUND THAT THE POLICE AGENCY SEEMED TO ENJOY THE BENEFITS OF INCREASING RETURNS TO SEVERAL OF ITS RESOURCES. PARTICULARLY FIELD OFFICERS, CIVILIANS, AND MOTORCYCLE TEAMS WERE FOUND TO HAVE ELASTICITIES WITH RESPECT TO OUTPUT THAT WERE SUBSTANTIALLY GREATER THAN ONE. IT WAS FURTHER FOUND THAT AN APPROPRIATE PRODUCTION FUNCTION GIVES A HEAVY WEIGHT TO THE PUNITIVE COMPONENT OF OUTPUT. (AUTHOR ABSTRACT)