Information Technology, Political Institutions, and Generalized Trust
In a recent study, the authors reveal with structural equation models that the positive effect of information technology on generalized trust is mediated by political institutions. Although insightful, a key question remains: Is it the effectiveness and efficiency, the universality, and/or the power-sharing capacity of the state that mediates this effect? Drawing on new institutional economics, political culture, and theories of the welfare state, the authors derive a number of hypotheses connecting information technology to generalized trust vis-à-vis elements of the state. The study shows with structural equation models that what accounts for the technology-trust relationship is not necessarily the public allocation of resources or political mechanisms of sharing power, but the incentive structures found in effective and efficient legal institutions that reduce uncertainty and increase generalized trust. The paper concludes by outlining the implications and directions for future research.