BLACKS ARE OVERREPRESENTED AMONG THE ARRESTED, THE CONVICTED, THE INCARCERATED, AND THOSE LABELED CRIMINALS OR EX-OFFENDERS. ALTHOUGH BLACKS ACCOUNTED FOR ONLY ONE-TENTH OF THE 1967 U.S. POPULATION, THEY ACCOUNTED FOR ALMOST THREE-QUARTERS OF ALL ARRESTS. THREE TYPES OF EXPLANATIONS FOR THIS DISPARITY HAVE BEEN ADVANCED. SOME ECONOMISTS HAVE ARGUED THAT DISPARITIES IN LEGITIMATE OPPORTUNITIES ACCOUNT FOR THE HIGHER CRIME RATES AMONG BLACKS. A SECOND EXPLANATION IS BASED ON ALLEGED DISPARITIES IN THE CRIMINAL JUSTICE SYSTEM. USE OF THE RESIDUAL DISCRIMINATION METHOD TO ANALYZE PAROLE SHOWED THAT ALTHOUGH RACIAL DISCRIMINATION MAY EXIST IN AT LEAST PART OF THE CRIMINAL JUSTICE SYSTEM, THIS DISCRIMINATION DOES NOT EXPLAIN WHY BLACKS HAVE HIGHER CRIME RATES THAN WHITES. THE THIRD CLASS OF EXPLANATIONS FOR THE DISPARITY ASSERTS SIMPLY THAT BLACKS HAVE DIFFERENT TASTES OR PREFERENCES FROM THE REST OF THE POPULATION. EFFECTS OF TASTE AND PREFERENCES ON CRIME ARE IMPOSSIBLE TO MEASURE, HOWEVER. ALTHOUGH ALL THESE EXPLANATIONS ARE NOT MUTUALLY EXCLUSIVE OR EXHAUSTIVE, THEY ARE NOT EMPIRICALLY REFUTABLE. THE DISAGREEMENT OVER WHETHER BLACKS BEAR AN EXCESSIVE BURDEN OF OFFENDER COSTS OF CRIME DEPENDS ULTIMATELY ON THE DEFINITION OF FAIRNESS OR EQUITY. ECONOMICS CAN STUDY COSTS, BUT OTHER DISCIPLINES ARE NEEDED TO CONSIDER WHETHER THE DISTRIBUTION OF COSTS IS FAIR. MOREOVER, THE DIFFERING INCIDENCE OF JUSTICE ARISING FROM ALTERNATIVE NOTIONS OF FAIRNESS OR EQUITY CAN HAVE SIGNIFICANT IMPLICATIONS FOR THE ECONOMIC EFFICIENCY OF THE CRIMINAL JUSTICE SYSTEM. TABLES, FOOTNOTES, AND A REFERENCE LIST ARE INCLUDED. (AUTHOR ABSTRACT MODIFIED--CFW)