|dc.description.abstract||After the outbreak of coronavirus, the Chinese economy and consumption have been
negatively affected. First, our study qualitatively analyses the impact channels of the
Covid-19 on consumption. Theoretically, in addition to the direct impact of different
levels of lockdown measures on consumption, the Covid-19 also negatively impacts
consumption through income effect, wealth effect, and actual purchasing power effect.
Secondly, this paper uses macro data to conduct quantitative research. We set the VAR
model to analyse the relationship between the consumer price index, lockdown variable,
and the total retail sales of consumer goods. What’s more, we set a control group to
discuss how the lockdown measures may affect consumption.
The result of our Wuhan model shows that there is no short-term relationship between
Wuhan’s CPI and Wuhan’s retail sales of consumer goods. In contrast, the lockdown
measures could affect consumption. And Chengdu’s model also shows similar results.
However, the coefficient of the lockdown variable in Wuhan’s model is much higher
than the coefficient of lockdown variable in Chengdu’s model because of the different
lockdown levels in these two cities.||en_US