Suppose that eux v is a linear function of x v and that u, Business Economics

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Suppose that eux v is a linear function of x v and that u

Suppose that E[u|x; v] is a linear function of (x; v) and that u and v each have zero mean and are uncorrelated with x. Show that E[u|x; v] = v for some . (Hint: if E[u|x; v] is linear, then it is identical to L[u|x; v] and the linear projection formulas are available.)

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Business Economics: Suppose that eux v is a linear function of x v and that u

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