We show that it is, in principle, possible to perform local-realism violati
ng experiments of the Hardy type in which only position and momentum measur
ements are made on two particles emanating from a common source. In the opt
ical domain, homodyne detection of the in-phase and out-of-phase amplitude
components of an electromagnetic field is analogous to position and momentu
m measurement. Hence, local realism violations of the Hardy type are possib
le in optical systems employing only homodyne detection. [S1050-2947(99)005
11-9].