Provides a compatible model to previous work on college student migration in the form of a recursive set of equations. Points out that “hidden resource distortion”, a form of rent seeking in the political process, is positively related to institutional support for public colleges and universities in the United States. This result has implications concerning the goals of educational administrators, namely the incentive to “budget‐maximize”. This activity relates to the setting of public college tuition levels, which is a major factor determining the migration incentives of college students. In this model, resource distortion in the educational production function ultimately alters the choice set facing “consumers” in the search for optimal human capital attainment.
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