Data envelopment analysis for measuring technical efficiency associated with directions

This paper makes a summary of the existing methods of efficiency measures. Taking the idea of directional technical distance function into consideration, it defines a new index of technical efficiency for measuring technical efficiency. Following data envelopment analysis (DEA), it also discusses how to identify efficient decision making units (DMU) and to improve inefficient DMU. It mainly analyses the relationship between the index which is called L technical efficiency index and reaches a conclusion that it is a generalized index of L technical efficiency index.