Social Welfare Function Modeling (Case Study: Energy Subsidy)

This article seeks to modeling social welfare functions, for assessment of how distribution of transfer payment among socio-economic levels. We consider providing social welfare functions two scenarios, first the each socio-economic levels receives amount of transfer payment equal to others, and second the each socio-economic levels receives that with weighted preferences. The four basic functions determine optimal value of how distribution, and then calculate actual value of that by transforming COICOP to ISIC. Finally the difference between optimal and actual values is determined for rural and urban society and for first and second scenario. At the first scenario the difference between optimal and actual value is smaller than second and this difference at rural society is greater than urban society. The other hand the welfare distribution at the former is worse than later.