Forum Moderators: Robert Charlton & goodroi
I tend to believe that .gov and .edu TLDs have additional power out of the box. ;)
I'm not a fan of the "out of the box" theory. I think the algo itself accounts for everything we notice in the SERPs without attributing any special magic to the TLD itself. Google has always maintained that the TLD on its own is not part of the algo. In fact there are some "grandfathered" .edu domains (from before the restrictions were tightened up) and they are NOT highly trusted places to get links.
I also think that subdirectories and subdomains can get nailed even on a .edu, if Google sees evidence of either link selling or parasite hosting.