The current paradigm for the analysis of low bit rate image transform coding is based on non-linear signal approximation. Images are considered to be ``highly'' non-Gaussian processes that are not suited for the familiar linear approach, i.e. a fixed coefficient bit allocation based on the signal statistics. Instead, the non-linear approximation tries to find the ``best'' basis for a given \emph{individual} signal and a given rate. In many practical coders (wavelet, JPEG), this ``best'' basis consists in specifying the indices of a small number of quantized coefficients, which describe the signal with the desired accuracy. This works well with wavelet transforms of piecewise regular functions, since there will be only a few non-zero coefficients, mostly around the signal singularities. The key aspect is a rate trade-off between the \emph{lossless} code for the coefficient positions and the \emph{lossy} code for the values of those coefficients. By assuming that the signal belongs to certain functional spaces, one can find the ``optimal'' rate trade-off and from this an approximate operational rate distortion curve. In general this is \emph{not} the information-theoretic rate distortion function. Therefore it gives no information on how far from the theoretical optimum such algorithms operate.

Our goal is to find an alternative, i.e. information-theoretic, framework for the $R(D)$ analysis of such non-linear approximation schemes. As a tool we introduce the \emph{spike process}, which captures the idea of a single isolated non-zero coefficient. This can be extended to multiple spikes by independent superposition or, more efficiently, by joint description. We provide a definition of spike processes and then investigate the $R(D)$ behavior for Hamming distortion, which corresponds to \emph{lossy} position coding. We are trying to extend these results to Gaussian-distributed spikes and squared error measure, but so far we were only able to derive upper bounds.