THE PROGRAM IS DESIGNED TO PROVIDE AN ALTERNATIVE TO INSTITUTIONALIZATION FOR JUVENILE OFFENDERS BY PLACING THEM IN A DIFFERENT COMMUNITY-BASED RESIDENTIAL SETTING AND PROVIDING AN INTENSIVE COUNSELING SERVICE, RATHER THAN THE TRADITIONAL EDUCATIONAL-VOCATIONAL TRAINING PROGRAM ASSOCIATED WITH INSTITUTIONS. THE EFFECTIVENESS OF THE EXPERIMENTAL WALNUT STREET 'Y' PROGRAM IS COMPARED TO THE EXISTING FERRIS OPEN PROGRAM. ALTHOUGH NO DEFINITIVE CONCLUSIONS ARE REACHED, IT IS FELT THAT THE 'Y' PROGRAM COULD BE JUDGED AS SUPERIOR TO THE INSTITUTIONAL ARRANGEMENT EMBODIED IN THE FERRIS OPEN PROGRAM. GENERAL HYPOTHESES THAT CAN BE TESTED IN ANY COST-BENEFIT ANALYSIS ARE DELINEATED. CHARACTERISTICS OF EXPERIMENTAL PROGRAMS AS COMPARED WITH EXISTING PROGRAMS IS DISCUSSED, AND SPECIFIC PROGRAM EXAMPLES IN CALIFORNIA, FLORIDA, NEW YORK, MICHIGAN, AND HAWAII ARE CITED. IN ADDITION, THE MODEL BUILDING EFFORT IN COST-BENEFIT ANALYSIS IS ADDRESSED AND VARIOUS APPROACHES TO COST-BENEFIT ANALYSIS ARE DETAILED. CONCEPTS, CLASSIFICATIONS, AND PROCESSES FOR COST-BENEFIT ANALYSIS ARE LISTED IN TABULAR FORM. THE OBJECTIVES OF COST-FINDING SYSTEMS ARE ENUMERATED. FINALLY, THE APPLICATION OF THESE SYSTEMS TO THE PROGRAM OF DELAWARE'S DIVISION OF JUVENILE CORRECTIONS IS DISCUSSED. PROCEDURAL INFORMATION IS DOCUMENTED IN AN APPENDIX. A BIBLIOGRAPHY IS PROVIDED. (AUTHOR ABSTRACT MODIFIED)