Onsite studies found that there is a need to clarify definitions pertaining to economic techniques, to explain the methodology underlying the techniques, and to provide guidance in which technique is appropriate in a given context. As a result of these findings, the program model subsequently developed had a decision-oriented focus. The model considered decisions that can be informed by using results from cost, comparative cost, cost-effectiveness, and cost-benefit studies, and a detailed explanation of the techniques is provided. The discussion has three central decisionmaking themes; using cost analysis for budgeting, using cost-effectiveness analysis for assessing effectiveness in meeting correctional objectives, and using cost-benefit analysis for assessing the return on investments in corrections. Each technique is introduced by considering the decisionmaking theme it most appropriately addresses. Applications of each technique are included to demonstrate the analysis. Each example or cost study emphasizes the context in which decisions are made. The appendixes provide detailed information on the techniques and a synopsis of the telephone survey of correctional agencies to determine their use of economic analysis. A selected bibliography has about 210 listings.