Interest in estimation of simultaneous equation models coincided with the rise of
Keynesian economics in early 1960’s, and started to wane with the advent of the rational
expectations revolution and its emphasis on the GMM estimation of the structural parameters
from the Euler equations (first order optimization conditions). See Section 7 below.
But with the rise of the dynamic stochastic general equilibrium models in macroeconometrics
a revival of interest in identification and estimation of non-linear simultaneous
equation models seems quite likely. The recent contribution of Fernandez-Villaverde and
Rubio-Ramirez (2005) represents a start in this direction.