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The authors present a 16-band subband coder arranged as four equal-width subbands in each dimension, It uses an empirically derived perceptual masking model, to set noise-level targets not only for each subband but also for each pixel in a given subband. The noise-level target is used to set the quantization levels in a DPCM (differential pulse code modulation) quantizer. The output from the DPCM quantizer is then encoded, using an entropy-based coding scheme, in either 1*1, 1*2, or 2*2 pixel blocks. The type of encoding depends on the statistics in each 4*4 subblock of a particular subband. One set of codebooks, consisting of less than 100000 entries, is used for all images, and the codebook subset used for any given image is dependent on the distribution of the quantizer outputs for that image. A block elimination algorithm takes advantage of the peaky spatial energy distribution of subbands to avoid using bits for quiescent parts of a given subband. Using this system, high-quality output is obtainable at bit rates from 0.1 to 0.9 bits/pixel, and nearly transparent quality requires 0.3 to 1.5 bits/pixel.>
Safranek et al. (2003) studied this question.