I am having 5 countries aviation fuel cost of individual airline and like to assess the impact of crude oil price change on the cost. Therefore, how could I use crude oil in my panel data set because crude oil price is common for all countries?
You may add a variable called crude oil prices and copy the same value for all the airlines for any given periods, which will allows you to analyse the impact of variables that explain both between and within subjects variance. Hope this helps!
We should never include a static variable in panel data which does not change. You have mentioned that you wish to measure the impact of crude oil price change on the cost. The change can be taken in form of first differences stored in a variable when the data is arranged company wise with years.
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