Property and contract rights in autocracies and democracies

Any incentive an autocrat has to respect such rights comes from his/her interest in future tax collections and national income and increases with his/her planning horizon. The study finds a compelling empirical relationship between property and contract rights and an autocrat"s time in power. In lasting -- but not in new -- democracies, the same rule of law and individual rights that ensure continued free elections entail extensive property and contract rights. We show that the age of a democratic system is strongly correlated with property and contract rights. (Author abstract)