Abstract：Based on panel data of 31 provinces in China from 1998 to 2011, this paper analyzes local governmental health expenditure efficiency by using a two-stage framework of DEA-Tobit. Firstly, using DEA method, it evaluates the composite technical efficiency, pure technical efficiency and scale efficiency of local governmental health expenditure. Secondly，it makes an empirical study on the relationship between efficiency scores and some social and economic factors by Tobit, a limited dependent variable model. The results show that, owing to such social and economic factors as fiscal decentralization degree, health system reform，GDP per capita，education level，population density and urbanization rate, Chinese local governmental health expenditure efficiency varies widely among different areas.
Keywords：Health Expenditure Efficiency of Local Governments，Fiscal Decentralization，Health System Reform，DEA-Tobit Model
source:Finance & Trade Economics ,No9,2013