Abstract

 
Introduction: The main role of universities is to provide educational and research services to the community. Obviously, it is impossible to achieve goals and fulfill responsibilities without sufficient financial resources. Therefore, adequate funding is one of the most important challenges facing the universities.Considering the ubiquity of higher education institutions and the variety of operational strategies they offer to meet their financial resources, proper knowledge of these strategies is essential. The aim of this study is to critically identify models of financial allocation in higher education and consequently provide modulating suggestions.
Methods: In this study, a “critical review” approach was adopted to qualitatively evaluate and review the models of financial allocation.
 Results: According to previous studies, scientists in the field of education, economics and management have introduced three models to allocate financial resources in higher education. These models are based on the interactions between sources of financing and the impact of investment in higher education.  Each of these three general models, known as bureaucratic model, market-based model and collegial model, have their own advantages and disadvantages that have been criticized in this study.
Conclusions: Adequate and sustained resources are required to achieve the goals of higher education. Therefore, it is possible to increase educational fund in higher education with a modulating attitude toward the most appropriate resource allocation model that is to the benefit of both society and government. By Examining a variety of payment methods and integrating best practices and models, we can see the tremendous impact on the performance of higher education systems in Iran.
Key words: Higher education, Supply and financial allocation, Finance