The solution of the RE model can, therefore, be viewed as a restricted form of VAR popularized
in econometrics by Sims (1980) as a response in macroeconometric modelling
to the rational expectations revolution. The nature of restrictions are determined by the
particular dependence of A and B on a few "deep" or structural parameters. For general
discussion of solution of RE models see, for example, Broze, Gouriéroux, and Szafarz
(1985) and Binder and Pesaran (1995). For studies of identification and estimation of
linear RE models see, for example, Hansen and Sargent (1980), Wallis (1980), Wickens
(1982) and Pesaran (1981,1987). These studies show how the standard econometric
methods can in principle be adapted to the econometric analysis of rational expectations
models