| Article ID: | iaor20033336 |
| Country: | China |
| Volume: | 22 |
| Issue: | 2 |
| Start Page Number: | 66 |
| End Page Number: | 73 |
| Publication Date: | Feb 2002 |
| Journal: | Systems Engineering Theory & Practice |
| Authors: | Yan Hong, Li Guangjin |
This paper presents existing measures of technical efficiency. Taking the limitations of these approaches into consideration, it defines a new index of technical efficiency considering slacks on both input and output. Following data envelopment analysis (DEA), it develops an extension to DEA that is able to measure ‘technical efficiency’ defined in this paper. It also discusses how to identify efficient decision making units (DMUs) and how to improve a DMU which appears inefficient.