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In a classic DID model, the policy (or the treatment status) stay, once switched on, the same across the observation periods. That is, you have some units that are all untreated before the observation window. Then during the observation window, some received a treatment (the treatment status is 'on'), others stayed untreated (the treatment status is 'off').

I was reading an introduction of DID, on page 30 it says. There is a 'generalized DID model' that is more flexible. One of the flexibility is Switching (on/off) is allowed. However, it does not give any reference. Could anyone point me to a reference (prior study) paper, which used generalized DID to deal with a treatment that has switching throughout the periods? Thank you!

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What the linked slides are describing as "Generalized DID" is a panel data model with two-way fixed effects (the author clarifies this on the next slide).

There are lots of texts you could consult to learn panel data econometrics. A currently popular textbook treatment for economists is Jeffrey Wooldridge's Econometric Analysis of Cross Section and Panel Data.

In terms of free options, the vignette for the plm package in R (available here) has a more succinct description of panel data models as well as how to estimate them in R.

Edit: Just noticed you asked for an example study. The study mentioned in the slides you linked to (Autor 2003) is doing what you are looking for. The paper is here.

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