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Ruling elites’ rotation and asset ownership: implications for property rights

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  • Leonid Polishchuk

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  • Georgiy Syunyaev

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Abstract

We provide a theory and empirical evidence indicating that the rotation of ruling elites in conjunction with elites’ asset ownership could improve property rights protection in non-democracies. The mechanism that upholds property rights is based on elites’ concern about the security of their own asset ownership 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. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Leonid Polishchuk & Georgiy Syunyaev, 2015. "Ruling elites’ rotation and asset ownership: implications for property rights," Public Choice, Springer, vol. 162(1), pages 159-182, January.
    • Handle: RePEc:kap:pubcho:v:162:y:2015:i:1:p:159-182
    DOI: 10.1007/s11127-014-0210-2
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    Cited by:

    1. Andrew T. Young, 2016. "What does it take for a roving bandit settle down? Theory and an illustrative history of the Visigoths," Public Choice, Springer, vol. 168(1), pages 75-102, July.
    2. Andrew T. Young, 2015. "Visigothic Retinues: Roving Bandits that Succeeded Rome," Working Papers 15-09, Department of Economics, West Virginia University.
    3. Usman Khalid, 2016. "Catch-up in Institutional Quality: An Empirical Assessment," Discussion Papers 2016-04, University of Nottingham, CREDIT.
    4. Andrey Tkachenko & Daniil Esaulov, 2018. "The Role Of Governors In Public Procurement," HSE Working papers WP BRP 19/PSP/2018, National Research University Higher School of Economics.
    5. repec:nea:journl:y:2017:i:35:p:12-32 is not listed on IDEAS
    6. Anna Maria Koukal & Reiner Eichenberger, 2017. "Explaining a Paradox of Democracy: The Role of Institutions in Female Enfranchisement," CREMA Working Paper Series 2017-13, Center for Research in Economics, Management and the Arts (CREMA).
    7. repec:nea:journl:y:2017:i:34:p:12-38 is not listed on IDEAS

    More about this item

    Keywords

    Endogenous property rights; Credible commitment; “Stationary bandit”; K11; O17; P14;

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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