Inspired by the New Institutionalism in political science, the article examines the impact of political institutions on welfare state development in Switzerland. This article suggests that the strength of federalism and direct democracy have proved to be stumbling blocks for the expansion of the Swiss welfare state. Direct democracy and federalism have not only geared the path of welfare state evolution in a more liberal direction, but have also dampened social expenditures.
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Herbert Obinger (1998) studied this question.
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