Ruling elites ́rotation and asset ownership : implications for property rights

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.