The economic cost of homicide in New Zealand

Violence has become increasingly recognised as a public health issue, with significant impact on the health of individuals. In addition, there is increasing awareness that there are substantial economic costs associated with violence. The present study estimated the economic costs associated with homicide in New Zealand, using a human capital approach. Direct costs were assessed using information on incidence and costs from government agencies, and indirect costs were assessed based on loss of productivity resulting from death. The total estimated cost of homicides in 1992 was NZ $82997065 (U.S. $53948092), averaging NZ $1012159 per homicide (U.S. $657903). This total was comprised of the estimated total cost associated with homicide victims of NZ $37017010 (U.S. $24061056) and the estimated total cost associated with homicide perpetrators of NZ $45980055 (U.S. $29887035). Limitations of the incidence data and the methods employed suggest that these costs are likely to be underestimates. Nevertheless, the figure calculated represents an enormous drain on New Zealand's economic resources.