I know PROC SURVEYREG can incorporate clustering and fixed effects. However, I'm a bit confused as to how to include fixed effects. My understanding is, the CLASS command creates dummy variables for the categorization variable / fixed effect variable. But do I then include that variable in the model command?
For example, let's say var2 is my fixed effect. Do I...
proc surveyreg data=data;
class var2;
model y = var1 / solution;
run;
Or do I...
proc surveyreg data=data;
class var2;
model y = var1 var2 / solution;
run;
I think it is the second one, but running the first one does not provide the same coefficient estimates as if I run it without the CLASS command, so the CLASS command must be doing something other than just creating dummy variables?
Thanks!