This paper is concerned with second-order elliptic operators whose diffusion coefficients degenerate at the boundary in first order. In this borderline case, the behavior strongly depends on the size and direction of the drift term. Mildly inward (or outward) pointing and strongly outward pointing drift terms were studied before. Here we treat the intermediate case equipped with Dirichlet boundary conditions, and show generation of an analytic positive C0-semigroup. The main result is a precise description of the domain of the generator, which is more involved than in the other cases and exhibits reduced regularity compared to them.
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