Hi all,

I am working on time series data of 2 stock indices and trying to model them
based on VAR.  Regarding that I have some questions which are:

1) I calculated impulse response function keeping one series as impulse and
other as response. I know the
    theoretical interpretation of IRF but how to infer anything from the
"irf" plot. Tell me as to how can I read the graph.

2) What should we do if the model fails multivariate normality tests like
JB-test?

3) Would it be good if we take difference of two series (after adjusting
them to be comparable on a common scale)
    and then model the series using univariate techniques.

4) Would it be better if I take log(Pt / Pt-1) and then compare the 2
series.


Regards,

Khalid

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