Open for Economic Activities during the COVID-19 Pandemic: Factors Related to State Reopening Policies in a Federal Policy Vacuum

Abstract

What factors influence state governors to issue an executive order to reopen economic activities more or less quickly when removing the COVID-19 pandemic restrictions? Without comprehensive federal guidelines, state governors were faced with an administrative dilemma in devising mitigation policies that promoted safe public health measures while encouraging more business activity. Following the federal directive to reopen in April 2020, governors in all 50 states signed executive orders, but some waited longer than others. We argue that variation in the timing of the enactment of initial executive orders is influenced by political factors, financial resources factors, interstate factors, and problem severity of the public health incidence. Using an event history analysis, our Cox proportional hazard regression model suggests that states with unified Republican governments, more state funding obtained from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and participation in regional collaboration resumed activities earlier compared to states with more neighbors that issued reopening executive orders and states with more per capita income. Results indicate that, in crisis situations, unified political partisanship, the receipt of federal funding, and coordination with other states facilitate rapid policy adoption.