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We describe a general framework for modeling transformations in the image plane using a stochastic generative model. Algorithms that resemble the well-known Kalman filter are derived from the MDL principle for estimating both the generative weights and the current transformation state. The generative model is assumed to be implemented in cortical feedback pathways while the feedforward pathways implement an approximate inverse model to facilitate the estimation of current state. Using the above framework, we derive models for invariant recognition, motion estimation, and stereopsis, and present preliminary simulation results demonstrating recognition of objects in the presence of translations, rotations and scale changes.