Presenting a Model for Public Universities Funding in Iran

University as a knowledge institution follows the production, distribution and promotion of knowledge activities. A desired model for financing the activities of public universities is a model that at first, covers all mentioned activities; second, fulfills the three principals of efficiency, quality and equity; third, encourages quantitative and qualitative development of university’s activities. In percent model of public universities funding in Iran, only some activities of university is financed; there aren’t enough motivation for quantitative and qualitative development of activities and also economic efficiency improvement. In this article attempt is made to present a model in output- based operation funding framework that while considering all outputs of a comprehensive university, it considers also economic efficiency and encourages development of activities. "Output goals-based funding" approach and "data envelopment analysis" technique ware used to design the desired model. Performance of the model has analyzed by using 2008 data in universities that are affiliated to Ministry of Science Research and Technology and defining different scenarios for universities outputs development..The result analysis indicated that "output-based funding” as a quasi-market approach is a better replacement for current approach and the presented model is better than previous models.