The Production of Institutional Facts in Economic Discourse

Abstract Economic discourses are dominated by stylized facts and other statements of fact concerning the institutional economic order. Yet, there is still very little knowledge on how exactly facts are formed in economic discourse, how they serve as a means for rendering issues “economic”, and how they legitimize, renew and change institutions. This article introduces a theoretical model for studying the relationships between the presentation of institutional facts, institutional change and processes of economization. The model is based on John R. Searle’s theory of speech acts, on the so-called discursive institutionalism in political science and the study of institutional entrepreneurship as a political activity. The model is then applied on a limited scope to study the construction of institutional facts concerning public sector economies in three Finnish government and consultant reports. The key empirical findings conclude that the most common institutional facts are produced either by generalizing individual facts for various institutionalized activities or by combining one fact into various meanings. These facts are used to legitimize various policies, including cuts in public spending, strengthening the power of experts, increasing budgetary stability, lengthening working careers and the increase in public sector productivity.