Amplitude Modulation (AM) coding was studied in subjects with normal audiograms. AM coding was measured behaviorally and by the Envelope Following Response (EFR). EFR was modeled with hidden low and high spontaneous rate (SR) nerve fiber (ANF) loss. Low SR ANF loss accounted for AM coding differences among normal hearing controls. High and low SR ANF loss was needed to explain poorer AM coding in tinnitus.