In this discussion, I show how Basu (1997) model can be conducted in STATA program.
Please, start with file number 1.
Then go to file number 2 ((do file)).
In the attachments, I include the data used in applying this model.
In addition, I include appendices to make sure that you get the same results when you try to run Basu (1998) model using the current data.
I hope you will benefit from this discussion