Abstract: | This article seeks to explain cross‐cantonal variation in public education expenditure between 1985 and 1998. Four possible explanations are located: socio‐demographic and socio‐economic pressures, the impact of political institutions, the partisan theory, and the power resources of organized interests. Taking the research advantage of Swiss federalism our findings provide strong evidence that educational expenditure is systematically related to the socio‐demographic and socio‐economic pressures in a given canton. Furthermore, consensus democracy promotes educational finance, while the decentralization of the cantonal polity lessens the educational policy output. Finally, the instruments of direct democracy as well as partisan variables do not seem to account for differences regarding the budget expenditures on education in the Swiss cantons. |