*3.4. Data Collection and Variables Description*

This study calculated the entropy index of economic diversification based on the chain volume measures (2015) of total added value (producer price) of 16 industries in Macao from 2008 to 2016. Relevant data are from the Statistics and Census Service of the Government of Macao Special Administrative Region.

This study calculated the DEA efficiency of the gambling industry in Macao from 2008 to 2016, setting years as the Decision-Making Units (DMU) and adopting DEA efficiency calculated by a bootstrapping model to discover the change of efficiency of the gambling industry in Macao. In this study, input variables are the numbers of casinos (order of magnitude is 1), gambling tables (order of magnitude is 1), hotel rooms (order of magnitude is ten thousand) and employees (order of magnitude is ten thousand). These input variables reflect the scale of the gambling industry. To be specific, the number of casinos, amount of gambling tables, number of hotel rooms and the number of employees reflect land, capital and human investments. As a small economy, land, capital and human resources are the main inputs of Macao economic development. Output variables include the gambling gross income (order of magnitude is 100 million MOP), the gambling tax revenue (order of

magnitude is 100 million MOP) and the GDP (order of magnitude is 100 million MOP). The gambling gross income and gambling tax revenue are good measurements of the gambling industry's outcome. Since gambling tax revenue accounts for a high proportion of Macao GDP, GDP is also used as a measurement of the gambling industry's outcome.
