Coding theory, system theory, and symbolic dynamics have much in common. A major new theme in this area of research is that of codes and systems based on graphical models. This volume contains survey and research articles from leading researchers at the interface of these subjects.

Hidden Markov processes (HMPs) are important objects of study in many areas of pure and applied mathematics, including information theory, probability theory, dynamical systems and statistical physics, with applications in electrical engineering, computer science and molecular biology. This collection of research and survey papers presents important new results and open problems, serving as a unifying gateway for researchers in these areas. Based on talks given at the Banff International Research Station Workshop, 2007, this volume addresses a central problem of the subject: computation of the Shannon entropy rate of an HMP. This is a key quantity in statistical physics and information theory, characterizing the fundamental limit on compression and closely related to channel capacity, the limit on reliable communication. Also discussed, from a symbolic dynamics and thermodynamical viewpoint, is the problem of characterizing the mappings between dynamical systems which map Markov measures to Markov (or Gibbs) measures, and which allow for Markov lifts of Markov chains.

Symbolic dynamics is a mature yet rapidly developing area of dynamical systems. It has established strong connections with many areas, including linear algebra, graph theory, probability, group theory, and the theory of computation, as well as data storage, statistical mechanics, and $C^*$-algebras. This Second Edition maintains the introductory character of the original 1995 edition as a general textbook on symbolic dynamics and its applications to coding. It is written at an elementary level and aimed at students, well-established researchers, and experts in mathematics, electrical engineering, and computer science. Topics are carefully developed and motivated with many illustrative examples. There are more than 500 exercises to test the reader's understanding. In addition to a chapter in the First Edition on advanced topics and a comprehensive bibliography, the Second Edition includes a detailed Addendum, with companion bibliography, describing major developments and new research directions since publication of the First Edition.