Correlations in nondegenerate parametric oscillation. II. Below threshold results.

We develop the quantum theory of a driven, damped intracavity parametric oscillator in the case of nondegenerate signal and idler modes. An analysis of the results of different types of local-oscillator measurements on the outgoing modes is presented. The frequency-domain squeezing is calculated below threshold including the effect of detunings and nonequal decay rates. We also calculate a nonclassical correlation in the quadrature amplitudes of the output beams. The existence of an Einstein-Podolsky-Rosen paradox is demonstrated through violations of the inferred Heisenberg uncertainty principle at causally unrelated locations in the output field. This provides a way of maintaining the commutation relations of the measured operators in the exact form envisaged originally by Einstein, Podolsky, and Rosen.