Inequality adjusted growth rates in Latin America

Doubts have been raised about the benefits to an economy with high rates of GDP growth without at the same time accounting for distributional effects. This difference arises from the emphasis by some on the mean income, while others are concerned with the distribution around the mean. This paper assesses the per capita income that would be needed, if income were equally distributed to reach the same level of welfare, which is available from current distribution of the per capita GDP. This approach allows for the combination of both growth and distribution in ranking the success of some Latin American countries in their attempt to raise the living standard of the population. Copyright 2010, Oxford University Press.