  Transmission of a Gaussian source over a time-varying Gaussian channel is
studied in the presence of time-varying correlated side information at the
receiver. A block fading model is considered for both the channel and the side
information, whose states are assumed to be known only at the receiver. The
optimality of separate source and channel coding in terms of average end-to-end
distortion is shown when the channel is static while the side information state
follows a discrete or a continuous and quasiconcave distribution. When both the
channel and side information states are time-varying, separate source and
channel coding is suboptimal in general. A partially informed encoder lower
bound is studied by providing the channel state information to the encoder.
Several achievable transmission schemes are proposed based on uncoded
transmission, separate source and channel coding, joint decoding as well as
hybrid digital-analog transmission. Uncoded transmission is shown to be optimal
for a class of continuous and quasiconcave side information state
distributions, while the channel gain may have an arbitrary distribution. To
the best of our knowledge, this is the first example in which the uncoded
transmission achieves the optimal performance thanks to the time-varying nature
of the states, while it is suboptimal in the static version of the same
problem. Then, the optimal \emph{distortion exponent}, that quantifies the
exponential decay rate of the expected distortion in the high SNR regime, is
characterized for Nakagami distributed channel and side information states, and
it is shown to be achieved by hybrid digital-analog and joint decoding schemes
in certain cases, illustrating the suboptimality of pure digital or analog
transmission in general.
