User’s Guide : Multiple Equation Analysis : Impulse Response Analysis
  
Impulse Response Analysis
Interpreting VAR results can be difficult due to the complex interdependence between variables, their lags, and the large number of coefficients in the model. Notably, a shock to the i-th variable not only directly affects the i-th variable but is also transmitted to all of the other endogenous variables through the dynamic (lag) structure of the VAR.
A primary method of examining the properties of a VAR is impulse response (IR) analysis, which traces the impact of a shock to a single variable on the current and future values of all of the endogenous variables.