Chinese Commodity Price Evidence Study for COVID-19 Shock and Price Stickiness Model Design

Table 6

Variance decomposition.

Index	(1) cov(fr, dp)	(2) TDP term (%)	(3) SDP term (%)
All	−0.000667	85.64	14.36
Food	−0.000363	97.86	2.14
Clothing	0.000516	101.69	−1.69
Residence	−0.000757	58.28	41.72
Household equipment	−0.000762	87.05	12.95
Transport, post, and telecommunication	−0.000456	79.91	20.09
Culture, education, and recreation	−0.000373	94.95	5.05
Medicine and health care	−0.00118	86.91	13.09
Other goods and services	−0.000302	98.84	1.16

Notes: Column 1 shows the covariance between and . Column 2 is the changes in the intensive margin, which account for all of the variation in inflation in staggered TDP models. Column 3 shows changes in the extensive margin, which only contribute in SDP models.