6 If the economy can be described by a linear model in which the only two unknown parameters are r* and u* and the shocks that hit the economy are normal, Kalman filtering can be used to derive a closed form mathematical expression for how to update one’s estimate of r* and u* as new macro data arrive.
Indeed, this survey indicates that, in late 1995, the median user of an electronic source of information for savings or borrowing decisions had a college degree -- a level of education currently achieved by less than one-third of American households.