Inter-firm and intra-firm efficiency measures

Intra-firm efficiency involves computing a particular firm's efficiency deg ree over time relative to the firm-specific production frontier. Inter-firm efficiency reveals a particular firm's performance over time relative to t he "best practice frontier" among the set of comparable firms. These effici ency measures are related by an inter-firm catch-up component reflecting di fferences in technology across firms. Those measures are estimated for Dutc h pot-plant firms using the Generalized Maximum Entropy formalism. The empi rical results suggest the inter-firm catch-up component is the major determ inant of inter-firm efficiency.