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Cavity degenerate-parametric-amplifier and cavity four-wave-mixing configurations capable of producing a large amount of squeezing near the threshold of oscillation are discussed. Cavities allow one to reduce the pump power delivered to the gain medium, or to select a gain medium which has less gain per unit length, but may be better suited for squeezed-state production in other respects.
Bernard Yurke (1984) studied this question.