Laboratory Experiments or Opportunistic Behavior: State Governments Strategies in Times of Pandemic

Federalism may spur beneficial policy experiments that trigger a competition for the best concepts and ideas. For such a competition dynamic to emerge, state governments must have the will and courage to pursue their own paths. Opportunistic behaviors, where state governments shift their responsibilities to the federal level to deflect from their inefficiencies and own failures, pose an obstacle to such policy innovations. The COVID-19 pandemic presented a unique opportunity to scrutinize the behavior of state governments. For Germany, one of the largest federal economies in the world, we collect and analyze data. They show that the behavior of state governments during times of crisis was strongly characterized by opportunistic behavior patterns.