Conventional economic planning theories deal with a wide variety of approches to achieve an objective. The basic attempts in these thories have been to maximize or minimize an objective function, say, social welfare or profit of a firm or cost of producing a specific commodity, leading to an optimal policy frame work to achieve the goal.
Optimal theoritical policy frame work spelt out in the economic theory to achieve an objective more often is not suitable to the practical situation and the ever changing socio-economic environment.
In view of the above-stated reasons a different philosophy from that of the common meaning of optimal approaches is adopted.
A new approaches is proposed to clarify how the actual economic growth could be converged towards the reference economic path that is designed theoritically. Towards this objective the theory of model reference adaptive system is applied to a dynamic input-output system, and we propose the new method named “Model Reference Adaptive I-O System”.
