All optical oscillators and amplifiers can be analyzed as an electromagnetic structure, such as a cavity or a transmission line, which contains an amplifying medium. The operating characteristics of lasers are governed by both the electromagnetic properties of the structures and the properties of the amplifying medium.

Stimulated emission and absorption of radiation from energy states are the physical basis of amplification in all laser materials. In order to study lasers, it is necessary to understand the energy levels of the amplifying medium and the stimulated transitions involving them. Quantum mechanical analysis of the energy states and the stimulated emission and absorption is presented in most books on lasers. However, quantum mechanical analyses cover only the analysis of individual atoms. We need to relate the effects of the quantum mechanical interactions to the macroscopic properties of the materials so that properties of the lasers may be analyzed. Therefore, the macroscopic susceptibility of materials related to stimulated emission and absorption is the focus of discussion in this chapter.

It is not the purpose of this book to teach quantum mechanics. There are already many excellent books on this topic. The readers are assumed to have a fundamental knowledge of quantum mechanics. However, it is necessary first to review some of the major steps in order to understand precisely the notation used and the meaning of the results. This is presented in Section 5.1.