Today, human capital has an important role in growth and economic development. In recent decades, economic studies of education, specially higher education, have analysed the educational process through production function specification. A major problem of studies in higher education is the complexity which is introduced by joint production. Common sense is that higher education, and universities in particular, produce three outputs jointly, education, research and public services. In this study, it is assumed that the universities produce only education.This research by considering 21 state Universities as single output production units (as education procedures) investigates the relationship between human resources and physical resource for period of 1373-1377.Using a three - equation simultanious model, the university output quality, the university student admissior policy and the teaching staff quality are treated endognously. The results that have been generated by weighted least-squares (WLS) illustrate that in recent years, the student admission policies has decreased the university output quality. But the teaching staff quality as a human resource, has increased the educational production quality.In the other hands, physical resources, for example, educational department budgets, educational aid budgets and self-financed budgets have increased the educational production quality. Research budgets have declined educational activites domain and administrative; budgets have declined educational output quality. So, this is obvious that output variable reflects quantity and quality of educational production. Finally, the results are included the suitable offers for policy decisions in area of higher education.