# Log linearization and Conditional Expectation [duplicate]

How to log linearize an equation that has a conditional expectation? Any reference or example would be appreciated.

• $E(f(x))$ is not equal to $f(E(x))$ unless f is linear.
• $\partial E(f(x)) / \partial x$ is equal to $E(\partial f(x) / \partial x)$.
• The second bullet point is true only when you impose some regularity conditions on $f(x)$. That being said, you'll almost always get away with assuming said conditions are satisfied when doing economics. Jan 12 '17 at 23:25