A theory of matter-wave interference is developed in which resonant, standi
ng-wave optical fields interact with an ensemble of two-level atoms. If eff
ects related to the recoil the atoms undergo on absorbing or emitting radia
tion are neglected, the total atomic density is spatially uniform. However,
when recoil effects are included, spatial modulation of the atomic density
can occur for times that are greater than or comparable to the inverse rec
oil frequency. In this regime, the atoms exhibit matter-wave interference t
hat can be used as the basis of a matter-wave atom interferometer. Two spec
ific atom-field geometries are considered, involving either one or two fiel
d-interaction zones. For each geometry, the recoil-induced spatial modulati
on of the total atomic density is calculated. In contrast to the normal Tal
bot and Tadbot-Lau effects, the spatially modulated density is not a period
ic function of time, owing to spontaneous emission; however, after a suffic
iently long time, the contribution from spontaneous processes no longer pla
ys a role and the periodicity is restored. With a suitable choice of observ
ation time and field strengths, the spatially modulated atomic density serv
es as an indirect probe of the distribution of spontaneously emitted radiat
ion. [S1050-2947(99)07803-8].