Recently, a framework for multiscale stochastic modeling was introduce
d based on coarse-to-fine scale-recursive dynamics defined on trees. T
his model class has some attractive characteristics which lead to extr
emely efficient, statistically optimal signal and image processing alg
orithms. In this paper, we show that this model class is also quite ri
ch. In particular, we describe how 1-D Markov processes and 2-D Markov
random fields (MRF's) can be represented within this framework. The r
ecursive structure of 1-D Markov processes makes them simple to analyz
e, and generally leads to computationally efficient algorithms for sta
tistical inference. On the other hand, 2-D MRF's are well known to be
very difficult to analyze due to their noncausal structure, and thus t
heir use typically leads to computationally intensive algorithms for s
moothing and parameter identification. In contrast, our multiscale rep
resentations are based on scale-recursive models and thus lead natural
ly to scale-recursive algorithms, which can be substantially more effi
cient computationally than those associated with MRF models. In 1-D, t
he multiscale representation is a generalization of the midpoint defle
ction construction of Brownian motion. The representation of 2-D MRF's
is based on a further generalization to a ''midline'' deflection cons
truction. The exact representations of 2-D MRF's are used to motivate
a class of multiscale approximate MRF models based on one-dimensional
wavelet transforms. We demonstrate the use of these latter models in t
he context of texture representation and, in particular, we show how t
hey can be used as approximations for or alternatives to well-known MR
F texture models.