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Using a panel of west German states (Länder) for the period 1985 to 2002 we analyse potential effects of demographic change and political constellations on higher education spending, as suggested by recent literature on the political economy of the determination of public expenditures. We find empirical evidence for the hypothesis of a negative relationship between demographic aging and higher spending on public education. In contrast to the hypothesis of the classical partisan theory that implies higher public expenditures under leftist parties, we find that governments under conservative parties or a coalition between social democrats and conservatives spend more on public higher education than governments run by the social-democratic party alone.

Generationen- oder Parteienkonflikt? Eine empirische Analyse der deutschen Hochschulausgaben