Citizen Preference and Public Education in Australia: An Analysis of Interstate Differences*

In the centrally financed public education system of Australia, interstate differences in per student educational spending have been interpreted as measures of efficiency. An alternative explanation is that the variation reflects differences in citizen preference. An analysis of a survey of citizen opinion demonstrates that, while the relative efficiency explanation cannot be ruled out, it is likely that the variance in per student expenditures is a reflection of the preferences of the citizens of each State. It appears that States come close to satisfying the demands of their median voter.