Implicit Rent and the True Cost of Education Bleg
By Bryan Caplan
As far as I can tell, spending statistics for education do not count implicit land rent as part of the cost of education. The Digest of Education Statistics‘ Table 213 for example, states that:
Current expenditures include instruction, support services, food services, and enterprise operations. Total expenditures include current expenditures, capital outlay, and interest on debt.
Construction costs – but not land – should be included in capital outlay. If the school borrowed money to buy land, that would be counted in debt service. But otherwise, it sounds like implicit land rent never enters the equation.
Am I right about this? Please share relevant references.