Ruling Elites' Rotation and Asset Ownership: Implications for Property Rights
36 Pages Posted: 19 Dec 2013
Date Written: December 18, 2013
We provide a theory and empirical evidence showing that the rotation of ruling elites in combination with elites' asset ownership could improve property rights protection, and that such association holds for non-democratic political regimes when it is based on elites' concerns about security of their own property rights in the event they lose power. Such incentives provide a solution to the credible commitment problem in maintaining secure property rights when institutional restrictions on expropriation are weak or absent.
Keywords: Endogenous property rights, credible commitment, "stationary bandit''
JEL Classification: K11, O17, P14
Suggested Citation: Suggested Citation