Question: What is a potential limitation of using differences-in-differences analysis in practice? DID analysis assumes that the treatment and control groups are identical in all aspects

What is a potential limitation of using differences-in-differences analysis in practice? DID analysis assumes that the treatment and control groups are identical in all aspects DID analysis cannot be used with panel data or multiple time periods DID analysis may be sensitive to the choice of the control group and the validity of the parallel trends assumption DID analysis is only applicable to experimental settings and cannot be used with observational data

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