A wavelet-based two-stage near-lossless coder

In this paper, we investigate a two-stage near-lossless compression scheme. It is in the spirit of "lossy plus residual coding" and consists of a wavelet-based lossy layer followed by an arithmetic coding of the quantized residual to guarantee a given L^∞ error bound in the pixel domain. Our focus is on the selection of the optimum bit rate for the lossy layer to achieve the minimum total bit rate. Unlike other similar lossy plus lossless approaches using a wavelet-based lossy layer, the proposed method does not require iteration of decoding and the IWT(Inverse Wavelet Transform) to locate the optimum bit rate. We propose a simple method to estimate the optimal bit rate and provide a theoretical justification for it. It is based on the \´critical rate\´ argument from the Rate-Distortion theory and \´whiteness\´ of the residual.