We analyze the dynamics of sum-frequency generation (SFG) and differen
ce-frequency generation (DFG) for broadband input fields. We demonstra
te that amplitude modulation of the input fields significantly affects
conversion efficiency of SFG and DFG, but frequency modulation does n
ot affect conversion efficiency. Analytic results for SFG and DFG outp
ut-field intensities are thereby available for arbitrary fields. Self-
and cross-phase modulation can affect the dynamics in the limit of ve
ry high field strengths, but these effects are of higher nonlinearity
and therefore usually negligible. The quantum efficiency of DFG is sho
wn to be generally higher than SFG, but the energy efficiency is much
lower if the difference frequency is significantly less than the input
frequencies. Optimal SFG;quantum conversion efficiency for such syste
ms approaches that of second-harmonic generation only if the. quantum
fluence (total number of photons) in the two input beams are equal. Op
timal DFG quantum conversion efficiency occurs when the number of phot
ons of frequency omega(2) is small-yet sufficient for significant stim
ulation. A recently developed method for obtaining efficient SFG for m
ultimode input fields is theoretically analyzed. The method involves u
sing an arrangement with two or more nonlinear mixing crystals with a
time-delay line situated between the crystals that delays one of the f
undamental fields relative to the other. The efficiency in the second
crystal depends on the cross-correlation function of the two fundament
al fields upon leaving the first nonlinear crystal. The time-delay met
hod is not effective for multimode DFG.