A drive circuit is provided that can drive a display panel with low power consumption, and an electro optical device including the drive circuit and its drive method are included. Switching signals RSEL, GSEL, and BSEL for demultiplexing are produced so as to control turning switching elements DSWR, DSWG, and DSWB for demultiplexing on and off, which separate data signal where R, G, and B are multiplexed and transmitted. An overlapped period, for periods of activating RSEL, GSEL, and BSEL is set between the timing of changing polarity of common voltage and the timing of assuring writing data signal to a pixel electrode. A drive circuit includes a reference voltage production circuit and a digital to analog conversion circuit and an output circuit, which outputs a programmed voltage (a reference voltage having the same phase as the common voltage) during the overlapped period. The first reference voltage production circuit includes plurality of operational amplifiers and the first and second voltage division circuits.