This study examines first the particular characteristics of education, looked upon as an economic good, which necessitate a kind of planning in that social activity. Subsequently it analyzes critically the literature on the economic value of education, the different approaches to educational planning and the mathematical models proposed for this purpose. Then, a synthesis of these approaches is attempted to obtain a comprehensive estimate of the demand for education. The study elaborates further on the production and supply side of education and the input-output scheme and activity analysis models are proposed as analytical tools in drafting meaningful educational plans. Finally, data from the Berkeley campus of the University of California are used to estimate coefficients for the non-instructional human inputs in higher education.