We show that non-classical intensity correlations and quadrature entanglement
can be generated by frequency doubling in a resonator with two output ports. We
predict twin-beam intensity correlations 6 dB below the coherent state limit,
and that the product of the inference variances of the quadrature fluctuations
gives an Einstein-Podolsky-Rosen (EPR) correlation coefficient of V_EPR = 0.6 <
1. Comparison with an entanglement source based on combining two frequency
doublers with a beam splitter shows that the dual ported resonator provides
stronger entanglement at lower levels of individual beam squeezing.
Calculations are performed using a self-consistent propagation method that does
not invoke a mean field approximation. Results are given for physically
realistic parameters that account for the Gaussian shape of the intracavity
beams, as well as intracavity losses.Comment: 12 pages, 9 figures, normalization corrected, fig 3 and fig 7 update