Federalism will essentially develve into a large welfare redistribution to individuals with values close to their jurisdiction’s mean from individuals further from that mean.
The biggest problem is not moving costs but a form of adverse selection: suppose Texas values are more conductive to running a prosperous state than California values. The you will wind up with people from California moving to Texas for economic reasons but keeping their original values.
The biggest problem is not moving costs but a form of adverse selection: suppose Texas values are more conductive to running a prosperous state than California values. The you will wind up with people from California moving to Texas for economic reasons but keeping their original values.