In this paper parameterizations of linear state-space systems by balanced c
anonical forms are considered. The structure, in particular the topological
properties, of these parameterizations are investigated, Based on these re
sults an algorithm for identification obtained by optimizing a likelihood-t
ype criterion function is proposed and analyzed, In the algorithm both the
estimation of real-valued parameters and of integer parameters (defining dy
namic specification) is incorporated. The analysis of the algorithm emphasi
zes consistency results.