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Estimating the Costs of Crime in New Zealand in 2003/04 - WP 06/04

5.6  Sensitivity analysis

As mentioned earlier, the cost estimates in this paper have been derived on the basis of assumed total volumes for each category of crime, using multipliers. Table 9 shows how much a one percent increase in the assumed total volume (i.e. after the multiplier effect) for each crime category would increase the estimated costs of crime.

Table 9 – Additional costs associated with a one percent increase in the volume of crime
2003/04
$ million
1% increase in volume of crime
Offences against the person 36
– Violent offences 25
– Sexual offences 10
– Robbery 1
Offences against private property 30
– Burglary 7
– Theft 11
– Property damage 3
– Fraud 10
Offences with no direct or intended victim 8
– Drug offences 0
– Serious traffic 8
– All other 0
Total 74

The cost estimates are also sensitive to assumptions around the value of property lost per crime, intangibles and lost output. A one percent increase in the assumed unit cost for each of these would increase our estimates of the costs of crime, by the amounts shown in Table 10.

Table 10 – Additional costs associated with a one percent increase in unit costs
2003/04
$ million
1% increase in unit costs for:
Property lost Intangible costs Output costs
Offences against the person 0 25 7
– Violent offences 0 16 5
– Sexual offences 0 8 2
– Robbery 0 0 0
Offences against private property 18 9 0
– Burglary 3 2 0
– Theft 5 4 0
– Property damage 1 2 0
– Fraud 9 1 0
Offences with no direct or intended victim 0 5 3
– Drug offences 0 0 0
– Serious traffic 0 5 3
– All other 0 0 0
Total 18 39 10
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