Scaling dummy and categorical variables for unbalanced SUR using Allen McDowell's method

[Srabashi Ray]

Hi All,

I am trying to use Allen McDowell's (linked below) method for unbalanced SUR estimation. I am wondering if in the first step of re-scaling the data, should I be rescaling the dummy and catagorical variables too?
Thanks for any inputs.

Regards,
Srabashi