Deriving ols continued o We can write our 2 restrictions just in terms of x, y, Boand B,, since u=y-Bo-Bix ◆F(y-BD-Bx)=0 ◆E[x(y-B-B1x)=0 These are called moment restrictions Economics 20- Prof anderson 10Economics 20 - Prof. Anderson 10 Deriving OLS continued We can write our 2 restrictions just in terms of x, y, b0 and b1 , since u = y – b0 – b1 x E(y – b0 – b1 x) = 0 E[x(y – b0 – b1 x)] = 0 These are called moment restrictions