THE FIRST SECTION DISCUSSES JUSTICE, DEFINED AS AN EQUITABLE SHARING OF FREEDOM AND ORDER AMONG SOCIETY'S MEMBERS, AS A DESIRED OUTPUT OF THE SYSTEM. THE FUNCTION OF LAWS AND THEIR ENFORCEMENT AS COSTLY MEANS TO PROMOTE JUSTICE IS DISCUSSED. CRIMES ARE DEFINED AS VIOLATIONS OF THE LAW. THE NEXT SECTION OUTLINES WHAT IS KNOWN ABOUT THE MAGNITUDE AND DISTRIBUTION OF THE DIFFERENT COSTS ARISING FROM CRIME. THE THIRD SECTION DISCUSSES THE VARIETIES OF POLICE, COURT, AND CORRECTIONAL INSTITUTIONS: THE SOURCE AND AMOUNT OF RESOURCES ALLOCATED TO THEM, THE RELATIONSHIP BETWEEN INSTITUTIONS AND OTHER ASPECTS OF THE SECTOR'S ORGANIZATION. THE FOURTH SECTION SURVEYS SEVERAL ATTEMPTS BY ECONOMISTS TO MODEL AND EVALUATE ASPECTS OF POLICY THOUGHT TO BE IMPORTANT TO THE PRODUCTION OF JUSTICE: DETERRENCE, PLEA BARGAINING, AND BAIL REFORM. THE FINAL SECTION CONTAINS A BRIEF SUMMARY AND SOME CONCLUDING COMMENTS. (AUTHOR ABSTRACT) (SNI ABSTRACT)