A closed loop system identification method is developed in which estimation bias from sensor noise and external disturbances is minimized. The method, based on the instrumental variables four step algorithm (IV4), uses three steps. The first step estimates a model using cross covariance calculations between the reference input signal and the control and measured output signals. The second step employs the prefilter identification process from the IV4 process. The third and final step uses the prefilter, the instrumental variables and the reference, control and output signals to estimate the final model. The method is demonstrated on a diesel engine where an open loop model relating fueling to engine speed is sought. The identification example is complicated by the presence of nonmeasurable external torque disturbances due to vehicle accessories.

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