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Human visual system (HVS) is applied to wavelet transform in this paper. Wavelet transform decomposes the spatial frequency domain to octave band scale and this process is similar to that of HVS. So the wavelet transform and modulation transfer function (MTF) of HVS can be optimally coupled in order to gain coding efficiency. Several quantizing stepsizes are determined for each subband by integral ratio which is from frequency response of wavelet filter and MTF. Compared with JPEG, the result shows superiority.
Lee et al. (Tue,) studied this question.