A full quantum theory of the Mach–Zehnder interferometer with nonlinear Kerr media in both arms is presented. The nonlinear operator equations can be integrated, and the result can be normal-ordered. This permits evaluation of the factorial moments of the photon number to all orders of the nonlinearity. Various excitations and phase biases are studied. The degree of squeezing by the interferometer is determined.
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Shirasaki et al. (1989) studied this question.
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