Stochastic stable population theory with continuous time. I

Abstract

This paper contains a systematic presentation of time-continuous stable population theory in modern probabilistic dress. The life-time births of an individual are represented by an inhomogeneous Poisson process stopped at death, and an aggregate of such processes on the individual level constitutes the population process. Forward and backward renewal relations are established for the first moments of the main functionals of the process and for their densities. Their asymptotic convergence to a stable form is studied, and the stable age distribution is given some attention. It is a distinguishing feature of the present paper that rigorous proofs are given for results usually set up by intuitive reasoning only.     

Creative destruction and regional productivity growth: evidence from the Dutch manufacturing and services industries

Do firm entry and exit improve the competitiveness of regions? If so, is this a universal mechanism or is it contingent on the type of industry or region in which creative destruction takes place? This paper analyses the effect of firm entry and exit on the competitiveness of regions, as measured by total factor productivity (TFP) growth. Based on a study across 40 regions in the Netherlands over the period 1988–2002, we find that firm entry is related to productivity growth in services, but not in manufacturing. The positive impact found in services does not necessarily imply that new firms are more efficient than incumbent firms; high degrees of creative destruction may also improve the efficiency of incumbent firms. We also find that the impact of firm dynamics on regional productivity in services is higher in regions exhibiting diverse but related economic activities.     

Mobilising supplier resources by being an attractive customer: Relevance,status and future research directions

For buying companies, supplier resource mobilisation is an essential process in gaining and sustaining preferential access to supplier resources. This editorial provides insights into the processes of supplier resource mobilisation and introduces three empirical studies on supplier resource mobilisation. We first introduce the supplier resource mobilisation cycle. This cycle may serve as a roadmap for purchasing and supply management (PSM) practitioners seeking to improve access to supplier resources. In addition, this article informs PSM scholars about the status of the supplier resource mobilisation literature and proposes avenues for future research. The cycle includes six stages: (1) becoming an attractive customer, (2) segmenting suppliers, (3) generating supplier satisfaction, (4) becoming a preferred customer, (5) engaging in supplier-oriented actions, and (6) integrating supplier resources. Finally, we introduce the articles in this issue that each examine a different stage of the supplier resource mobilisation process.     

Currency carry trade regimes: Beyond the Fama regression

We show that carry trade strategies resemble FX option strategies that sell out of the money puts on high interest rate currencies. Both strategies collect premiums to generate persistent excess returns that unwind sharply when volatility increases. We also show that the widely documented negative slope coefficient in regressions of exchange rate depreciation on forward currency premiums is an artifact of the volatility regime. In high volatility regimes, the so-called Fama regression produces a positive coefficient greater than unity. We finally document the existence of an intuitive co-movement between currency risk premiums and yield curve risk factors.     

Exploring the dynamics of antecedents to consumer–brand identification with a new brand

This study examines the dynamics of consumer–brand identification (CBI) and its antecedents in the context of the launch of a new brand. Three focal drivers of CBI with a new brand are examined, namely: perceived quality (the instrumental driver), self–brand congruity (the symbolic driver), and consumer innate innovativeness (a trait-based driver). Using longitudinal survey data, the authors find that on average, CBI growth trajectories initially rise after the introduction but eventually decline, following an inverted-U shape. More importantly, the longitudinal effects of the antecedents suggest that CBI can take different paths. Consumer innovativeness creates a fleeting identification with the brand that dissipates over time. On the other hand, company-controlled drivers of CBI—such as brand positioning—can contribute to the build-up of deep-structure CBI that grows stronger over time. Based on these findings, the authors offer normative guidelines to managers on consumer–brand relationship investment.