In this paper, reducing the cost of scalability is investigated. A coding scheme based on cascaded MDCT-transform is presented, for which masking thresholds are iteratively calculated from the transform coefficients quantized at previous layers. As a result, the masking thresholds are updated at the decoder in the same way as at the encoder without the need to transmit explicit information such as scale factors. By eliminating this overhead, this approach significantly improves the coding efficiency. It is also shown that further improvements are made possible by allowing the transmission of some side information depending on the frame or on the layer.
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