ABSTRACT
This chapter focuses upon three issues that concern the distribution of households by income. First, what happens if household income increases? The general result for an open city is that land rents and population density increase as a compensating penalty. Second, the CTLR has been combined with a Production Theory of Land Rent setting. As exogenous parameters affected the production sector, the effect is spatially transmitted to the household sector. Third, the effect of income distribution and its pull upon migration has been examined. It was determined that households would be better off the fewer are the numbers of households with the same income; this is because households with the same income compete for the same space, thereby driving down each other's welfare. The households of the open city are partitioned into two income groups. Call households with the relatively higher income yR rich, and those with the relatively lower income yp poor.
