The emergence of the COVID-19 pandemic in the United States in 2020 signaled the beginning of a twofold economic and public health crisis. The pandemic's aftermath was managed by a patchwork of government entities at the municipal, state, and federal levels. State and municipal public health authorities were in charge of testing, contact tracing, and enforcing local stay-at-home orders. Meanwhile, the federal government was principally in charge of public outreach (such as reporting caseloads and quarantine protocols), treatment and vaccine research, and coordination of state and local response activities.

Q1) Analyze the role of state and municipal governments, as well as the federal government, in providing public goods in response to the epidemic. Is this division of responsibilitieswarranted by public finance theory?

Q2) What are some of the possible benefits and downsides of this federalist arrangement versus one that may arise under a unitary system of government?