Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements

We challenge the common practice of estimating gravity equations with interval or averaged data in order to capture dynamic-adjustment effects trade-policy changes. Instead, we point a series advantages using consecutive-year recognizing effects. Our analysis reveals that, relative data, use avoids downward-biased effect estimates due distribution events during an event window as well anticipation (pre-interval) and delayed (post-interval) effects, it improves efficiency more data.