Abstract
The potential for improving state and local government productivity through more effective relationships with the sector is limited by inadequate understanding of the nature of the private sector. Rather than suggest a single theory or set of definitions, this analysis works from three different perceptions of economic activity in a state or local jurisdiction: that of a market economy; a pluralistic economy; and a holistic economy. None of these three perceptions is necessarily the correct one; each probably describes some aspects of economic behavior in various jurisdictions more usefully-for the purpose of improving public productivity-than a single model that attempts to synthesize all three. Each perception also suggests a somewhat different definition of public productivity.
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