Dear all,

So far I learned that DiD is used with a Fixed effects model.
But I just read a paper of Kamer et al. (2020) Change in Traffic Fatality Rates in the First 4 States to Legalize Recreational Marijuana, where they used a DiD approach with a Random effects model.
"Then, we performed a difference-in-difference analysis with a random effects model to compare the change in traffic fatality rates between the 2 groups from the prelegalization to the postcommercialization period."
So I guess you can do it, but what are limitations, assumption and main differences when doing so (besides the basic differences between FE and RE models)?
You can also refer some literature that would answer these question

Best
Philipp