29There is an interesting link between the signal-to-noise ratio from the estimated Kalman filter models, var(ΔlogC*t)∕ var(Δ logCt)  , in table 4 and the first-stage R2  for consumption growth from the IV regressions in table 1. The correlation between the two statistics is about 80 percent across countries, confirming that consumption growth can be predicted better in the countries with smaller measurement error and transitory fluctuations.