EXPENDITURE MODELING WITH A MIXTURE OF LOGNORMAL DISTRIBUTIONS

The adequate evaluation of success of market reforms in transition economies necessarily in-cludes the assessment of the reform social cost, including welfare redistribution. The main source of information on the distribution of income, expenditures and wealth are population surveys [1,2]. Various distortions and deficiencies of the available survey micro data complicate this as-sessment. Because of wage arrears, as well as high shares of informal economic activities, in-cluding home production, the welfare of a household is better represented by (per capita) expenditures than by the officially reported in-come. Besides, survey participation rates tend to differ in different welfare groups. One of th