Abstract

AbstractThe aim of this work is the study of a new stochastic diffusion model with a cubic‐type drift coefficient. The model is considered as the solution of an Ito stochastic differential equation. Using the Ito's stochastic calculus and properties of the Kummer function, the trend functions and steady‐state distribution for the process are obtained. Statistical estimation and corresponding computational methodology are established. Finally, the model is applied to modelling and prediction of the global CO2 emission in Spain. Copyright © 2006 John Wiley & Sons, Ltd.

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